Industrial

Tour O n

Report

GPH ISPAT LTD.

LOCATION: CHITTAGONG EXPORT PROCESSING ZONE (CEPZ)

----PROJECT----

Overall Management practice of GPH ISPAT Limited

I n d u s t r i a l

T o u r On

R e p o r t

GPH ISPAT LIMITED

Prepared for:

Prepared by:

Project: Overall Management practice of Anita Bangladesh Limited

Date of submission: 11 December, 2011

TABLE OF CONTENT
Table
Preface Acknowledgement Methodology Objectives Limitations 1. Introduction Part Companys brief history & background 2. Organizations part Department and Division 3. Human Resource Development 4. Marketing Management Part 5. Management Practice Part 6. Financial Management Part Sources and Uses 7. Conclusion Bibliography Appendix---- Questionnaire

Page Number
5 6 7 8 9 10 11 14 15 18 33 38 41 42 44 46 =========

PREFACE Now a days there says that present business environment is changeable .To understand this statement every small and large industry follow various rules, principles, strategy and their operation procedure. To capable and understand every student the authority of NUB arrange totally practical education and include into the text syllabus in the B.B.A program. This investigation is one of the parts in the syllabus. Every year arrange such like of program. After the program every student asked to prepare a tour paper report. This program actually compliment able that was made for B.B.A. student of NUB. Student can obtain practical knowledge after study this investigation, which would not be possible in the way. We visited GPH ISPAT LTD and collected various information about it. This Tour Paper report is based on that collected information.

Acknowledgement

On submitting this Tour Report of Fall, 2011 BBA, we would like to express our heartiest gratitude and indebtedness to several persons. First of all we would like to express my deepest gratitude and heart-felt thanks to my honorable supervisor Tarana Aziza khan, lecturer, Department of BBA, Northerrn University Bangladesh. It is a great fortune for us in receiving encouragement and co-operation from her. We are indebted to her for kind guidance, valuable advice, instructions and persuasion and encouragement to assist us in all stages of preparing this report. Frankly speaking, we not able to complete this study without his advice and kind co-operation. It is an excellent opportunity to heartiest thanks to Mr.Zahangir Alam, General Manager of GPH ISPAT LIMITED, who helped me to gather information. We also extended my sincere acknowledgement to Mr.Faruk Ahmed,senior manager of GPH ISPAT LIMITED for helping us through providing necessary information and data.

METHODOLOGY

At the time of the tour on GPH ISPAT LIMITED, we have followed several procedures. We know to complicate any kind of task; there is one best way. That is why we have followed a number of procedures for my knowledge. The methodology can be portrayed as below Personal observation

Discussion with the concerned officer and employee of the GPH ISPAT
LIMITED. Through the questionnaire. Analysis of collected information.

OBJECTIVES

Tour report is a most valuable way for earning practical knowledge of a professional degree. So, we have also some objectives of this tour. The main objective of the tour is to gather practical knowledge and experience on management practices of a multinational company. The objectives behind the tour are mentioned below: To evaluate the performance of this companys management systems. To evaluate the overall performance of marketing strategy. Organization is fast, flexible and focused on what is important. To know the overall performance of financial activities and co-ordinates To evaluate the performance of production activities. To analyze the companys Human Resource Management System.

To

know the overview of management practices to analyze the companys

Human Resource Management System. To know the overview of management practices.

Limitations

Every project \Program has some limitations. we faced some constraints during the course of my Industrial Tour Report. These are as follows: Time was not sufficient for preparing this report. Collection data is very expensive. Employees are not interested to provide actual information. Production data is relatively applicable for related field. GPH ISPAT Limited has no direct sales; as a result we dont get actual figure of cost of goods sold, inventories control and account receivable.

: Part One : I n t r o d u c t i o n

INTRODUCTION AND BRIEF HISTORY OF THE COMPANY:

GPH ISPAT LTD Established in 1987, Jahangir & Others Limited has been renowned in the business of trading, namely CI Sheet, MS Rebar, cement, bitumen and zinc Ingot and established cement factory, power plant, insurance company, steel mill and share trading house (as a corporate member of Chittagong Stock Exchange Limited). In all these areas of business, the owner of the company Mr. Md. Jahangir Alam, along with his brothers and nephews, has been reputed as the man of commitment. They have shown their best expertise in cement industry by establishing M.I. Cement Factory Limited, a joint venture with Mollah Salt Group and Premier Cement Mills Limited, a joint venture with T. K. Group, producing the brands Crown Cement and Premier Cement respectively. In steel manufacturing, they have gained experience and expertise by running a hand-rolling mill, Indo Steels Re-Rolling Industries Limited from the year 2000. Now it seems to be the right time for the company to contribute more in the steel sector of Bangladesh with the establishment of GPH Ispat Ltd. The factory is situated at Kumira, Sitakunda, Chittagong. It launched its production from the -first half of 2008. The plant, consisting of three units steel melting, steel rerolling and captive power plant, has been equipped by machineries of various internationally reputed manufacturers.

PART TWO O R G A N I Z A T I O N P A R T

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Department and Divisions The following are the major organizational part in GPH ISPAT LIMITED. 1. Human Recourse Development 2. Marketing Management 3. Management Practice 4. Financial Management

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PART 3

H U M A N

R E S O U R C E

M A N A G E M E N T

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HUMAN RESOURCE MANAGEMENT

INTRODUCTION Human Resource Management (HRM) is an extremely important area in management, as modern management concepts are increasingly becoming people oriented in character. The term HRM has been defined in different ways. The British Institute of HR has defined it as that part of the management concern with people at work and with their relationship within an enterprise. It has also been defined as: The part of the management process which is concerned with the human constituents of an organization. - E. F. L. Breach.

OBJECTIVES
The objectives of Human Resource Management are as follows: a) It is concerned with the optimum utilization of human resources within an organization. b) It is concerned with the creation of conditions in which each employee is encouraged to make his best possible contribution to the effective working of the undertaking. c) It also concerned with the development of a sense of mutual respect and trust between management and workers through sound relations. d) It endeavors to increase the productive efficiency of the workers through training, guidance and counseling and e) It tries to rise the morale of the employees.

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Current Terminology
The terms HRM, Industrial Relations, Manpower Management, Labor Management etc is frequently used as if they are all synonymous.

Responsibility
The responsibility for performing functions to achieve desired objectives has in the foregoing been placed upon management. The primary responsibility for personnel management in a company must be assumed by its top management. Evaluation of the effectiveness with which desired objectives have been attained shows where (1) future personnel plans can be improved and (2) responsible executives can be appropriately rewarded or penalized.

Principles of HRM
The basic principles are given below: a. Deal with people as complete individuals. Employees may be hired for their technical and economic usefulness. b. Make employees feel worthwhile and related. People do not live by bread alone applies to workers too.

Perspective of HRM
Human resource management must deal with the present and be concerned with the future. It must build programs that solve problems in the framework of today and tomorrow. But if it is to perform its tasks as effectively as possible, it must also be aware of the past. Forces and factors and experiences in the past have their impact upon the present and future.

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Findings of the study

In my visited company, GPH ISPAT LIMITED there is a separate human resource management department. The structure of that HRM department is as under:

MD Operation manager

Finance Manager

Production officer

A/ P/O

A/PO

Job Analysis:
Job analysis is the procedure by which the facts with regard to each job are systematically discovered and noted. In short, it is a procedure for obtaining pertinent job information. This information is recorded basically on two forms to make a permanent record-one is called Job Description and the other is called Job Specification. This is the primary and pre-condition before recruiting and selecting a person. GPH ISPAT LIMITED follows job analysis before employee recruitment.

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Job Description:
Job description is a factual statement of the duties and responsibilities of a specific job. In other words, it describes the work performed, the responsibilities involved, the skill or training required.

Job Specification:
Job specification is a statement of the human qualities necessary to do the job. Usually it contains such items as education, experience, training and physical skills. GPH ISPAT LIMITED follows job analysis, job specification and job description.

Employee Recruitment:
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. The sources of recruitment can be broadly classified into two categories: i) ii) Internal source External source

Findings:
GPH ISPAT LTD. usually searches from internal sources for recruiting the required candidates. There are some advantages and disadvantages of internal sources. They are:

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Advantages:
1. It increases employees performance because employee can go higher position than previous one. 2. Internal recruitment provides opportunity for establishing essential relations with employees. 3. It increases morale, job satisfaction and organizational citizenship. 4. It increases facilities for good person job-fit.

Disadvantages:

1. Restriction in case of new employees. 2. Sometimes recruited employees from internal sources have lower stimuli than recruiting from other sources. Employee Selection: After completing the recruitment of employees, then the selection procedure starts. There are various types of selection test for employee selection. These are:

Written (subjective type) test, Written (objective type) test, Oral test Medical test Others

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Findings: But GPH ISPAT LIMITED makes firstly a short list of applicants from among all before selection test. And this short list is prepared on the basis of experience and qualification. Then the company follows the following tests for employee selection: Written (subjective type) test, Oral test Medical test

But this selection procedure can vary person to person. Such that For worker: In YSL, there is no written test for selecting workers. For staff: Departmental manger is responsible for selecting fight people. For Junior Manager/Brand Manager: Human resource department takes a series of tests. All the candidates are required to sit for written test. Besides this, written test, interview, physical test, group performance test, physical examination is also included. For Senior Manager: This post is filled up through promotion and hiring from other manufacturing concerns. The sequence of selection procedure of this company is as follows: Advertising in daily newspaper Written test taking from short listed candidates Oral test Medical test Final selection

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Training and Development: Training is a corner-stone of sound management. Employees must be systematically trained if they are to do their jobs well. Moreover, a training program gives management an opportunity to explain carefully and clearly its policies, rules and regulations. In a large company, however, the personnel Manager usually delegates the responsibilities for the training to a manager or an officer in charge of the training section of the Personnel Department. There are various kind of training methods that constitute the content of the training programs. These are: 1. On the job training 2. Off the job training 3. Apprenticeship training Findings: GPH ISPAT LIMITED maintains on the job training. This training is conducted by the supervisors or by a senior employee who is responsible for instructing the employee. One major advantage of the on the job training method is that the employee have first-hand experience with the job and learns by doing.

Performance Appraisal: Performance appraisal is a systematic appraisal of an employee by his supervising officer who is conversant with the employees job performance. In other words, it is a process of evaluating performance of an employee by his superior with relation to his job requirements. The main purposes and uses of performance appraisal are as follows: 1. Employee performance 2. Employee development 3. Supervisory understanding

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Findings: GPH ISPAT LIMITED maintains the employee performance evaluation regularly. The company has professional appraisers to evaluate the performance. ASSESSMENT RATING: The appraise (employee under assessment) and appraiser (Supervisor) are required to make joint assessment of the performance demonstration by the appraisee during the period. WAGES AND SALARY ADMINISTRATION: In a broader sense, it is used to describe all types and forms of compensation and benefits. It includes hourly pay of production workers and monthly supervisory, clerical staff, executives etc. According to popular usage of the two terms, salary normally refers to those payments that are computed on a weekly, monthly or yearly basis for white collar worker, whereas wage refers to those payments that are computed on an hourly or a daily basis for blue collar workers. Personnel department has its own policy for salary and wage administration. There are some bases for setting pay. These are as follows: a. Seniority b. Experience c. Performance d. Position e. Geographical distance f. Academic qualification g. Personal relation

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Findings: In GPH ISPAT LIMITED, there is a specified salary structure for employees in the organization. The main basses for setting basic pay in this organization are seniority and performance. But this salary varies employee to employee.

Employee Benefits and Services: Nearly every organization provides its employees certain tangible benefits over and above the basic pay. The term benefits and services is very widely used to designate this area of personnel management practice. The benefits may be financial and also may be non-financial benefits and services. The financial benefits may be1. Salary 2. Bonus 3. Allowance 4. Incentives 5. Insurance or provident fund.

Again, the non-financial benefits may be1. Communications/transport 2. Medical services 3. Death insurance 4. Accommodation 5. Entertainment 6. Others

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Motivation: Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar forces. To say that managers motivate their subordinates is to say that they do these things which they hope will satisfy these drives and desires and include the subordinates to act in a desired manner. Again, motivation can be defined as the process that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. The three key elements in this definition are important. Motivation-Hygiene Theory This theory is also called two-factor theory of motivation and was proposed by psychologist Fredrick Hertzberg. According to him, Intrinsic factors such as the work itself, responsibility, and achievement, seems to be related to job satisfaction, while Extrinsic factors such as supervision, pay, company policies, and working conditions are associated with dissatisfaction.

Findings:

GPH ISPAT LIMITED. Follows the two factor theory of motivation. They usually give the importance in to the intrinsic factors of the employees. Intrinsic factors or Motivational factor which is related to job satisfaction such as recognition, growth, advancement, work itself and achievement etc. The organization motivates the employees by the following things: Handsome basic pay Extra allowance Increment in basic pay Job security Job status Good behavior Better working environment

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Promotion\Demotion:

A promotion is the movement of an employee to another job at a higher level, normally to one that carries increased prestige, pay and performance requirements. On the other hand, promotion is the advancement of an employee to a better job- better in terms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay or salary. There are basically three factors as a basis for promotion.

They are: Merit Seniority Merit & Seniority

Findings: GPH ISPAT basically considers the merit and seniority as a basis for promotion of an employee. In this system, experienced and senior employees both are satisfied. As a multination organization it is essential and effective. Interpersonal Relationship:

It improves employees morality and organizations citizenship. GPH ISPAT LIMITED. Improves their interpersonal relationship through party, meeting, counseling, annual picnic and official festival.

Fringe Benefit: Fringe benefit can be constructing to include all expenditures designed to benefits employees over and above regular based pay and direct variable compensation related to output.

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In our practical findings, GPH ISPAT LIMITED. provides such fringe benefits. There are a lots of fringe benefits which are provided to the employees by this company. They are :

1. Rest room 2. Reward for long service 3. Uniform 4. Medical facilities 5. Hazard protection Management-Workers Relationship: Management and worker relationship are good which indicates high job satisfaction. Good relationship also indicates high morality, productivity and group cohesiveness in this team-oriented organization. GPH ISPAT LIMITED follows counseling, training in order to establish good-management relationship.

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PART - 4 M A R K E T I N G M A N A G E M E N T

PART-4 MARKETING MANAGEMENT

MARKETING: Marketing embraces all the business activities involved in getting commodities of all kinds, including services, from the hands of producers and manufacturers into the hands of final consumers. GPH ISPAT LIMITED also practices the marketing management as their marketing mix. But they do not follow the traditional marketing strategies because it is a 100 % export oriented manufacturing company. Production and Product line: GPH ISPAT LIMITED is basically a Bicycles manufacturing company. It actually produce Still based on buyers requirements.

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Target Market:

The process of evaluating each market segment, attractiveness and selecting one or more segments to enter the present market is known as the target market.

In GPH ISPAT LIMITED, there target market is especially for foreign market. They are marketing their products to CHINA,INDIA and according with requirements. Sales Target: The sales target is fixed by the marketing department. In that case, it is ascertained the target in the different terms of period such as monthly, half yearly and yearly shipment. Another is to make shipment according to their demand. The target sales or export and the actual performance of the company are the year wise report.

Promotional Measures: Promotional decision occupies significant position in the element of marketing mix skillful promotion can help to increase sales export in the market and to create expected level image. GPH ISPAT LIMITED attaches much importance to promotional activities. Three types of promotional program simply taken of the company deserve mention: 1. Sales promotion (Export or trade oriented) 2. Customer or buyer oriented 3. Online based Sales Performance and Policies: Selling is the best marketing task of a company. GPH ISPAT LIMITED lays stress on promoting sales position of the company. It always makes concerned efforts to achieve expected sales and keeps the supply position steady. Since GPH ISPAT LIMITED is 100% export oriented company so it always tries to develop the sales on global market.

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Grading Concept of the Company: This case has taken by the company in regard to the products. It is followed on the capable of being divided assorted, group or classification in to certain common lots that show similarities. We observed that GPH ISPAT LIMITED maintains grade very strongly on their products size and quality. Market Structure: GPH ISPAT LIMITED is a production oriented manufacturing concern. The nature of production is Still. .

Production Performance and Analysis: The production target for the whole year is controlled by the marketing department. The annual target is divided as weekly basis. The change in manufacturing target is occurred from time to time as per the change of the world market situation. In order to ensure the requirement of production target regarding product quality and quantity a weekly and regular review is made.

Advertisement: The company does not follow any advertisement strategy, only for creating Market demand GPH ISPAT LIMITED always maintains product quality.

Transportation: Transportation is a necessary function of marketing because most of the markets are geographically separated from the area of production. On the basis of products, there is required the various types of mode of transports to the place of consumption. In this context the company likes the sea, air and land transportation to carry on their products. But the company normally prefers the sea transportation because it contains the large volume of products at a time.
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PART 5

M A N A G E M E N T

P R A C T I C E

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PART-5 MANAGEMENT PRACTICES

Goal or Objective: GPH ISPAT LIMITED considers production for setting organizational goal and objectives. Company has establishing rules, procedures, policies or strategies but do not encourage participative decision-making.

MISSION: The mission or purpose identifies the basic function or task of an enterprise or agency or of any part of it. Every kind of organized operation has, at least should have if it is to be meaningful, purposes or missions. In our practical findings, the main mission or purpose of GPH ISPAT LIMITED is to create or increase profit as a production oriented company.

Specialization: This company follows work specialization for every employee. Work specialization refers to every employees should specialized in the particular field. GPH ISPAT LIMITED does not emphasize generalization.

Policies and Procedures: One of the most comprehensive definitions of policy refers to the determination of basic long term objectives and of courses of action and allocations of resources to achieve these aims.

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Decision Making: Decision making is defined as selection of a course of action from among alternatives. Decision making may be either centralized or decentralized. The decision making process of GPH ISPAT LIMITED is centralized by the authority. The lower level managers can not participate in the decision making.

Span of Control: The number of subordinates a manager can effectively and efficiently direct. Wider span are more efficient in term of cost. However at some point wider pan reduce effectiveness. That is, when the span becomes too large, employee performance suffers because supervisors no longer have the times to provide the necessary leadership and support.

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PART 6

F I N A N C I A L

M A N A G E M E N T

PART-6

FINANCIAL MANAGEMENT

Financial Planning Process: Planning involves selecting missions and objectives and the actions to achieve them, it requires decision making. GPH ISPAT LIMITED also has a strong financial

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planning process in which the authority has to formulate these plans. Most of the times top-level management makes decisions. Financial Statement: Financial statement is a statement that contains the financial transactions for a specified time period. Every company has various kinds of financial statements but the company did not provide any kind of financial statement because of their financial secrecy. Capital and Capital Structure: Foreign investment is the main source of capital of the company. The capital structure normally follows paid up capital. Since the company is always export oriented so the source of capital must be the foreign investment.

Findings: The company does not provide any type of financial statement due to their business secrecy.

Market Share

GPH ISPAT LIMITED does not enter share market

Short term and Long term Financing:

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Most of the company use short term financing to meet their financial requirements, while long-term (long term dept and equity) is used to meet long-term capital requirement. There are four basic source of short term financing.

1. Account payable 2. Bank loan 3. Commercial paper 4. Accruals

GPH ISPAT LIMITED always uses the short term finance from companys own sources. Long term finance is basically supplied by foreign investment.

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PART 7

CONCLUSION

CONCLUSION
This report of industrial tour emphasizes the management practices of GPH ISPAT LIMITED. In this discussion, we observed that the company usually practices the sound management in their working environment. And we also observed that the company always very much conscious about the human rights. The code of conducts of

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the company which were mentioned earlier indicates that clearly. The human resource management department of the company is also apparent in view of the employee concern. However, this tour has helped me to learn a lot of practical knowledge about the management practices of the reputed multinational company. Finally, I would like to render gratitude to my honorable teacher and supervisor Tarana Aziza Khan Lecturer, Department of Management, Northern University bangladesh, for arranging this program.

BIBLIOGRAPHY

NAME OF BOOKE

AUTHOR

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 PERSONNEL MANAGEMENT

EDWIN B. FLIPPO

PERSONNEL ADMINISTRATION THE HANDBOOK ON SERVICE & CODE OF CONDUCT PERSONNEL MANAGEMENT ESSENTIAL OF MANAGEMENT MARKETING MANAGEMENT

PAUL PIGORS & CHARLES A. MYERS. PUBLISHED BY - THE YOUNGONE HUMAN RESOURCE DEPOARTMENT. S. A. HAQUE

HEROLD KOONTZ.

PHILLIP KOTLER

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