1

SUBMITTED TO

MISS AMNA SHAFIQUE

[1] READ! IN THE NAME OF THY LORD AND CHERISHER, WHO CREATED,[2] CREATED MAN, OUT OF A CLOT OF CONGEALED BLOOD: [3] READ AND THY LORD IS M OST BOUNTIFUL, [4] HE WHO TAUGHT (THE USE OF) THE PEN, 5] TAUGHT MAN THAT WHICH
HE KNEW NOT

SUBMITTED BY:

H AR
AFIZ LI

AZA

0345-6692542 YOUR_ALI_S@YAHOO.COM THE UNIVERSITY OF LAHORE (CITY CAMPUS)

ACKNOWLEDGEMENT
WHEN WE START WRITING, WE STOP FOR WHILE AND THINK WHAT TO WRITE? HOW TO WRITE ? WE HAVE
NO WORDS TO EXPRESS OUR FEELINGS. BUT WE HAVE TO WRITE TO OFFER OUR HUMBLEBEES SENSE TO

ALL MIGHTY ALLAH THE

MOST BENEFICIAL, GRACIOUS AND MERCIFUL WHO ENABLE US TO PERCEIVE HIGHER IDEAS OF LIFE AND HELPED US THROUGHOUT OUR LIFE ESPECIALLY IN WRITING THIS REPORT AND ALL BLESSING TO H IS FAVORITE

PROPHET MUHAMMAD (PBUH) WHO IS THE GREATEST PERSONALITY OF THIS UNIVERSE?

AFTER GOD WE OWE OUR HEARTIEST GRATITUDE TO OUR PARENTS AND OUR FAMILY WHO S PRAYERS
ENCOURAGED US TO COMPLETE OUR TASK

WE WOULD LIKE TO THANKS MISS AMNA SHAFIQUE & MR. ABU BAKAR (HR MANAGER OF NISHAT)
TO GUIDE US AND TAUGHT US VERY SINCERELY SO THAT WE ARE ABLE TO MAKE THIS PROJECT

Dedicate To My Fiance

SAMINA

Table of Contents
1. Introduction of Nishat Group ......................................................................................................... 12 Mission Statement ............................................................................................................................. 13 VISSION Statement ............................................................................................................................ 13 2. Nishat Chunian Limited: ................................................................................................................. 14 3. Performance of the Company ........................................................................................................ 15 i. ii. iii. iv. Investments ............................................................................................................................... 16 Financial Structure ..................................................................................................................... 17 Business Strategy ....................................................................................................................... 17 Corporate Governance ............................................................................................................... 18

4. PREFACE ........................................................................................................................................ 19 5. Organizational Objective ................................................................................................................ 21 6. Organizational Structure of Nishat ................................................................................................. 21 7. Human Resource and Management ............................................................................................... 22 i. ii. iii. iv. v. vi. vii. Introduction ............................................................................................................................... 22 HUMAN RESOURCE .................................................................................................................... 22 Purpose...................................................................................................................................... 23 Objectives of HRM ..................................................................................................................... 23 Role of HR Department .............................................................................................................. 23 Jobs of HRM ............................................................................................................................... 24 HRM in Nishat Mills ................................................................................................................ 24

8. Classification of HR Department in NISHAT..................................................................................... 26 i. Responsibility of HR Manager in Nishat ...................................................................................... 26

9. Department ................................................................................................................................... 27 1. 2. 3. Spinning: .................................................................................................................................... 27 Weaving: .................................................................................................................................... 27 Home Textiles: ........................................................................................................................... 28

a. b. c. d. e.

Home Textile Products ............................................................................................................... 28 Dyes and Finishes: ...................................................................................................................... 28 Bed Linen ................................................................................................................................... 29 Curtains ..................................................................................................................................... 29 Table Linen................................................................................................................................. 29

10. Recruitment Process .................................................................................................................... 30 11. Recruitment Policy ....................................................................................................................... 30 12. Internal Recruitment: ................................................................................................................... 31 ii. Replacement charts ................................................................................................................... 31

13. External Recruitment ................................................................................................................... 32 14. Economic Factor........................................................................................................................... 33 15. Work Environment ....................................................................................................................... 34 16. Hierarchy Chart ............................................................................................................................ 35 Ah hierarchy is an arrangement of objects, people, elements, values, grades, orders, classes, etc. A hierarchy chart shows that what comes after what A hierarchy chart of an organization shows the formal structure of an organization s positions and it shows that who reports to whom and clear the confusions. ........................................................................................................................................ 35 17. CENTRALIZATION AND DECENTRALISATION:................................................................................. 36 o o o Centralization............................................................................................................................. 36 Decentralization: ........................................................................................................................ 36 Decision Making System of Nishat Chunian ................................................................................ 36

18. PERFORMANCE APPRAISAL .......................................................................................................... 37 19. Motivation ................................................................................................................................... 38 20. Swot Analysis ............................................................................................................................... 40

Executive Summary

Nishat has grown from a cotton export house into the premier business group of Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement, Banking and Power Generation. Today, Nishat is considered to be at par with multinationals operating locally in terms of its quality products and management skills. The system, the style of working & the commitment of the employees in NML is really exemplary. The difference between the success & failure is doing things right and doing things nearly right, & NML has always tried for success & that is why it is known to be one of the leading organizations in Pakistan. Irrespective of all these positive points of Nishat Mills Limited, I have noticed a few areas where the improvement can really increase the efficiency of NML. In this report I have given a very brief review of what I have seen during our project I have mentioned all these as I have made a project as according to the schedule. Then I have done a detailed SWOT analysis. Then I have discussed about my learning in the whole project that is all about the HR and process of the productions. I have made it possible to write each and every thing that I have learnt there. I have all my practical efforts in the form of this manuscript that s the asset for my future career.

10

Company Information:
Board of Directors: Mr. Muhammad Saleem Mrs. Farhat Saleem Mr. Shahzad Saleem Mr. Manzoor Ahmed Mr. Aftab Ahmad Khan Mr. Manzar Mushtaq Mrs. Nabiha Samad Audit Committee: Mr. Aftab Ahmad Khan Mr. Shahzad Saleem Mr. Manzar Mushtaq Company Secretary: Mr. Farrukh Ifzal Bankers to the Company: ABN AMRO Bank N.V. Allied Bank Limited Askari Commercial Bank Limited Bank Alfalah Limited Citi Bank N.A. Deutsche Bank AG Dubai Islamic Bank Pakistan Limited Faysal Bank Limited Habib Bank Limited Hong Kong & Shanghai Banking Corporation Limited Meezan Bank Limited National Bank of Pakistan NIB Bank Limited Standard Chartered Bank Pakistan Limited The Bank of Punjab Union Bank Limited Chairman Member Member Chief Executive Nominee NIT Chairman

11

Auditors: Riaz Ahmad & Company Chartered Accountants Registered & Head Office: 31-Q, Gulberg-II, Lahore, Pakistan Phone :5761730-39 Fax :5878696-97 Web :www.nishatchunian.com Mills: Spinning 1, 4 & 5 49th Kilometre, Multan Road, Bhai Pheru, Tehsil Chunian, District Kasur. Spinning 2, 3 & Weaving 49th Kilometre, Multan Road, Kamogal, Tehsil Pattoki, District Kasur. Dyeing & Printing 4th Kilometre, Manga Road, Raiwind.

12

1. Introduction of Nishat Group:

Nishat Group is one of the leading and most diversified business groups in South East Asia. With assets over PRs.300 billion, it ranks amongst the top five business houses of Pakistan. The group has strong presence in three most important business sectors of the region namely Textiles, Cement and Financial Services. In addition, the Group has also interest in Insurance, Power Generation, Paper products and Aviation. It also has the distinction of being one of the largest players in each sector. The Group is considered at par with multinationals operating locally in terms of its quality of products & services and management skills

Mian Mohammad Mansha, the chairman of Nishat Group continues the spirit of entrepreneurship and has led the Group successfully to make it the premier business group of the region. The group has become a multidimensional corporation and has played an important role in the industrial development of the country. In recognition of his unparallel contribution, the Government of Pakistan has also conferred him with Sitara-e-Imtiaz, one of the most prestigious civil awards of the country. The Textile business is further subdivided into 2 textile divisions: Nishat Faisalabad and NishatChunian divisions. The textile capacity of the group is the largest in the country. An addition of20,000 new spindles, 100 new air jet looms and new dyeing plant has increased the existing capacity of 242,000 spindles, 740 looms and dyeing and finishing capacity of 5 millions meters. The group is the largest exporter of textile products from Pakistan for more than a decade. Nishat provides quality piece dyed fabrics in heavy twills to some of the world's leading brand Names like GAP, Old Navy, and banana republic, DKNY, Tommy Hilfiger, Chaps and Sears

13

Mission Statement:
To provide quality products to customer and explore new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team so as to achieve optimum prices of product of the Company for sustainable and equitable growth and prosperity of the company we want to be among the top suppliers of quality textile products worldwide

VISSION Statement:
Our vision of tomorrow is a better quality of life for the people of Pakistan To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing Company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan To transform the Company into modern and power generating Company that is fully equipped to play meaningful role on sustainable basis in the economy of Pakistan

14

2. Nishat Chunian Limited:

Nishat (Chunian) Limited was incorporated in 1990 as a public limited company with an equity Investment of Rupees 100 million. A spinning mill having a capacity of 14,400 Spindles were established at Bhai Pheru, Tehsil Chunian. It started commercial production on 10March 1991. The capacity was enhanced to 19,200 spindles in 1998. In 1998, the Company diversified its business interest by venturing into a weaving project with the installation of 99air jet looms.

A new state of art spinning unit started production in November 2000, increasing the total spinning capacity to about 40,872spindles. Subsequently weaving capacity was increased to 212 air jet looms while the spinning capacity was increased to 50,952spindles. During the period ended 30 June2005, the Company enhanced its spinning capacity substantially by acquiring the operating assets of Umber Fabrics Limited comprising of 38,544 spindles and by addition of a new spinning unit with 40,128spindles. In 2006, the Company also diversified into Home Textile Business. The Company is currently operating with142, 196 spindles, 293 looms, a modern dyeing and finishing plant having capacity of 71,000 meters per day and captive power plants with a total capacity of 33MW.

15

3. Performance of the Company

During the year under review, the Company's profitability is at its lowest in last ten years. Sales during the year are highest ever at Rs. 7,678 million as compared to Rs. 6,551 million during the last year. This shows an annual increase in sales of around 17.20%.

However, the Company s profit before tax has sharply declined to Rs. 111.16 million as compared to Rs.340.80 million last year. Profit after tax is Rs. 10.16 million because of the tax provision of Rs.101 million as the Company is under presumptive tax regime. Higher cost of production and increased price competition has reduced the profitability margins substantially. The Company s gross profit margin dropped to 12.47% from last year's 17.84%. Further increase in the financial charges also reduced the profitability. Financial charges are Rs. 648 million showing an increase of Rs. 154 million over the last year. Earnings per share (EPS) are Rs. 0.14 as compared to Rs. 3.34 last year. The reduced profitability of the company is attributable to a number of factors. This was the first year our Home Textiles Plant came into production and initially capacity utilization remained below breakeven level. During the year we had a partial shutdown in one of our spinning units for shifting of machinery for change in the product mix. Higher cotton prices and partial shutdown of the spinning unit resulted into a loss of around Rs. 150 million in our spinning division during the year. Currently our Home Textiles Division is operating at more than 80% capacity. Moreover after changing the product mix of the spinning units,

16

our spinning division is operating at above breakeven level. Keeping in view the present scenario we are hopeful to have a higher profitability in next year

i. Investments
During the year under review, the Company made no substantial investment in the plant and machinery. Presently we are operating with 142,196 spindles, 293 air jet looms, 1 Dyeing &Stitching plant and captive power plants with the combined capacity of 33 MW.

17

ii. Financial Structure

A conservative financial structure has been employed in view of the seasonality and cyclicality of the textile industry. We have identified the targeted levels of the critical financial ratios and decisions for future investments are made subject to the constraints of these financial ratios. During the year under review, financial charges have increased by 31%. This is mainly due tithe general hike in the interest rates in the country. The illustration shows the last five years financial charges as a percentage of sales.

iii. Business Strategy

Aggressive marketing has been the major factor in our consistent profitability over the past years. Our strategy is to remain at the cutting edge in terms of exploring new markets and new products. The focus is on niche marketing with specialized products. We have differentiated our business through consistent quality, reliable delivery and proactive handling of customer s needs. Investment in state of the art technology and top quality human resources has been key element of our business strategy. The organizational structure is lean with very little hierarchy and bureaucracy compared to other organizations of similar size. This gives us the flexibility to respond quickly to the changes in the market situation.

18

iv. Corporate Governance

As required by the Code of Corporate Governance, directors are pleased to report that: a. The financial statements prepared by the management of the Company present fairly its state of affairs, the results of its operations, cash flows and changes in equity.

b. Proper books of accounts have been maintained by the Company. c. Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. The International Accounting Standards, as applicable in Pakistan have been followed in preparation of financial statements. The system of internal controls is sound in design and has been effectively implemented and monitored. There are no doubts upon the Company s ability to continue as a going concern. There has been no material departure from the best practices of Corporate Governance as detailed in the listing regulations of the stock exchanges. The value of investment of contributory provident fund as at 30 June 2007 amounts to Rupees 54.480 million. The pattern of shareholding as at 30 June 2007 is annexed.

d.

e.

f. g.

h.

i.

19

4. PREFACE
1. Main view of Nishat Chunian Ltd.

2. Recipient picture

20

3. inside nishat Chunian ltd

4. Employees doing their work

21

5. Organizational Objective
To recognize that HR management exists to contribute to organizational effectiveness. Even when a formal HR department is created to help managers, the managers remain responsible for employee performance. The HR department exists to help managers achieve the objectives of the organization. HR management is not an end in itself; it is only a means of assisting managers with their human resource issues. For example, NISHAT HR department found that it could enhance it contribution to the organization through sophisticated information systems that allowed the department to cut #35 million a year from its budget. Simply stated, an HR department exists to serve the rest of the organization.

6. Organizational Structure of Nishat

22

7. Human Resource and Management i. Introduction

The policies and practices involved in carrying out the People or Human Resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising"

ii. HUMAN RESOURCE

Department exist to help people and organizations reach their goals. Along the way, they face many challenges arising from the demands of the employees, the organization, and society. The domestic and international environments are particularly turbulent because of the growing diversity of the workforce and the globalization of businesses. Challenges also result from ever changing laws, especially laws that address the need for equal employment opportunity. Within these constraints, the human resource department must contribute to the organization's "bottom line" in ways that are both ethical and socially responsible.

23

iii. Purpose
The purpose of human resource management is to improve the productive contribution of people to the organization in ways that are strategically, ethically, and socially responsible. This purpose guides the study and practice of HR management, which is also commonly called personnel management. The study of HR management describes the HR- related efforts of operating managers and shows how personnel professionals contribute to those efforts.

iv. Objectives of HRM

Managers and HR departments achieve their purpose by meeting objectives. Objectives are benchmarks against which actions are evaluated. Sometimes they are carefully thought out and expressed in writing. More often objectives are not formally though out and expressed in writing. More often objectives are not formally stated. Either way, they guide Hr function in practice.

v. Role of HR Department
Human Resource department play a very important role in Nishat Chunian Ltd LTD. New talent has a thirst for opportunity and that they are seeking such jobs which enhance there capabilities and to gain some experience. Due to these facts the HR department

24

Of Nishat is looking for these kinds of people who want to excel in life and are highly motivated to achieve some goals. The HR department of Nishat is working day and night to make this Organization a better organization by hiring people who are self motivated and there main aim is to make the company more profitable.

vi. Jobs of HRM

 Conducting job analysis  Planning needs and recruiting job candidates  Selecting job candidates  Orienting and training new employees  Appraising performance

vii. HRM in Nishat Mills

Employing over 9000 people.

Lowest Employee Turnover.

Seeks to fulfill the highest practical degree in administering its welfare and compensation program.

Apprenticeship and other training schemes at all levels. To obtain, manage, develop, motivate and gain the

25

commitment of company's key resource- the people who work in and for it.

To develop a positive corporate culture to promote commitment to excellence and quality throughout the company.

To identify training needs and provide required training to all categories of employees.

To make best use of the skills and abilities of all those employed in the organization.

To ensure that the company meets its social and legal responsibilities towards its employees, with particular regard to the conditions of employment, quality of working life provided for them and the need to promote environment, occupational health and safety.

To ensure industrial peace and harmony through excellent employee relations to achieve optimum level of employee, productivity and to contribute towards company s aimed quality standards.

26

8. Classification of HR Department in NISHAT

Human Resource Department

Recruitment & Selection

Training & Development

Compensation and Benefits

i. Responsibility of HR Manager in Nishat

Following are the responsibilities of HR Manager in Nishat Mills:y y y y Recruitment And Selection Policy Making Retention Program Improve Working Relation Of Employees

27

9. Department

It companies 3 units: y Spinning y Weaving y Home Textile

1. Spinning:
The spinning facility of Nishat Chunian consists of five units with a capacity of 150,000spindles, producing 90 million pounds of yarn per annum. To maintain a consistent product quality, stringent measures are taken not only in the sophisticated in-house labs, but throughout the production process

2. Weaving:
The weaving mill consists of state of the art Picanol Omni, Omni Plus and Toyota air jet looms in various widths ranging from 110 150 inches, providing greater flexibility in catering to customer needs. The renowned European company Benninger-Zell manufactures the Sizing and Warping machinery

28

3. Home Textiles:
The dyeing and finishing plant has a monthly capacity of 3.0 million yards per month with an equivalent stitching capacity. These plants are equipped with state of the art machinery specially designed to cater to high thread count fabric. During the dyeing, finishing and stitching processes, several measures are taken to ensure timely delivery of high quality fabric. This includes special care in fabric handling, full width rail stitching, PVA based size recovery, various devices to avoid creases and band mark variation, special unwinding devices, efficient squeezers, a computerized dye dispensing system and an on-line measurement and storage of data at every machine. a.

Home Textile Products:

The dyed and finished Sheeting and Upholstery range comprises of high density fabrics with widths up to 340 cm and yarn count range of Ne 40/1 100/1. This includes Percales up to 350thread count and Sateen s up to 800 thread count. We also produce high thread count sheeting fabric of unmatched quality with 1000 thread count. Other products in this range include fabric with up to 6 pick insertions, dobby fabric with intricate designs using 12-14 frames and fabrics made using plied, slub, dyed and fancy yarns. In addition to 100% cotton, a number of fibers invarious blends are used including Polyester, Viscose, Modal, Tencel, Bamboo, Soyabean and Milk Fiber. We also use Lycra, Cool Max, eVAP, T400 and Amicor b.

Dyes and Finishes:

NCL offer a wide range of dyes and finishes which can be adapted in accordance with customer requirements. The various dyeing options include Pigment, Vat, Reactive, Sulphurand Disperse. Some of the various finishes NCL can do are Water Resistant/Repellant, Soil and Stain Resistant, Wrinkle Resistant, Anti-microbial, Ultra Soft Hand Feel, and Fire Resistant. We have also developed antimicrobial, fragrant and ultra fast color finishes

29

c. Bed Linen:
Products in this category include Bed Sheet Sets, Valance Sheets, Bed Skirts, Quilt covers and Comforter Shells.

d. Curtains:
The product range also includes Curtains, Pelmets, Cushions, Tie Backs, 5 pieces Drapery Set, and Rod Percillia, which are offered to customers as separate items, as well as complete Curtain Sets. We also offer Tier Swag Sets for kitchen windows and Shower Curtains

e. Table Linen:
NCL produce Tablecloth, Table Runner, Napkins and Ruffles Round.

30

10. Recruitment Process

"The Process of seeking and attracting a pool of qualified applicants from candidates for job vacancies can be selected".

11. Recruitment Policy

An organization's recruitment policy provides the framework for recruiting action and reflects the organization's recruitment objectives. It details the overriding principles to be followed by management in general and by HR manager in particular. In Nishat Mills the recruitment process starts when a there is a vacancy and employee is required. The job requirement is forwarded to the HR Department by the head of

31

the particular department. Hr department then use two approaches to hire the employee internal recruitment and external recruitment.

12. Internal Recruitment:

i. Job Posting:

Advertising of job openings to current employees via bulletin boards, newsletters, or personal letters. Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer, or promotion and increasing the general level of morale. The first and foremost preference of Nishat Mills is to hire the employees through internal recruitment and giving existing employees more chances to develop their career. For this purpose Nishat Mills firstly use Internal Job Posting to fulfill the vacant seat.

ii.

Replacement charts:

A visual representation of which employee will replace the existing incumbent in a designated position when it becomes vacant. In Nishat Mills replacement charts are used rarely.

32

13. External Recruitment

To search the employee to fulfill the vacant seat outside the organization is called external recruitment. HR Department can use various approaches to locate and attract external candidates like Government agencies, private employment agencies, recruiting consultants, executive search firms, and educational institutions. Nishat Mills run the external recruitment campaign itself and do not use the other sources like agencies and search firms. Sources used for external job recruitment Following are the some sources of Job Recruitment in Nishat Mills: i. ii. iii. By Newspapers By Website By Universities

33

14. Economic Factor

The year under review is from July 2006 to June 2007. During the year, country's economy remained stable. However, Year 2006-07 was one of the most difficult years for Pakistan s textile industry. Higher cotton prices, higher wages and severe price competition reduced the profitability margins across the whole textile industry. Cotton prices were higher by around 7%whereas prices of yarn remained stagnant resulting into losses for the spinning industry. Higher fuel prices and gas load shedding disrupting the operations of the power generation, resulted into higher fuel charges. Tightening of monetary policy further increased the already high interest rates. The year under review is from July 2006 to June 2007. During the year, country's economy remained stable. However, Year 2006-07 was one of the most difficult years for Pakistan s textile industry. Higher cotton prices, higher wages and severe price competition reduced the profitability margins across the whole textile industry. Cotton prices were higher by around 7%whereas prices of yarn remained stagnant resulting into losses for the

Spinning industry. Higher fuel prices and gas load shedding disrupting the operations of the power generation, resulted into higher fuel charges. Tightening of monetary policy further increased the already high interest rates.

34

15. Work Environment

We believe that the greatest assets of a company are its people. NCL is an equal opportunity employer, where recruitment is made on the criteria of dedication, commitment, capability and determination. NCL employs over 6,000 people, enjoying high employee motivation, excellent working standards and a productive work environment.

At NCL, we believe in building a long-term relationship with our employees that is enriching and beneficial to both sides. Regular on-the-job training is provided to our employees. Our benefits cover housing and medical expenses for our employees, as well as schooling for their children. We are committed to providing and maintaining a safe environment that fosters the well-being and health of our employees.

35

16. Hierarchy Chart

Ah hierarchy is an arrangement of objects, people, elements, values, grades, orders, classes, etc. A hierarchy chart shows that what comes after what A hierarchy chart of an organization shows the formal structure of an organization s positions and it shows that who reports to whom and clear the confusions.

36

17. CENTRALIZATION AND DECENTRALISATION:

o

Centralization:

Centralization is the process by which the activities of an organization, particularly those regarding decision-making, become concentrated within a particular location and/or group mostly the top management of organization. In a centralized organization, the decisions are made by top executives or on the basis of pre- set policies. These decisions or policies are then enforced through several tiers of the organization after gradually broadening the span of control until it reaches the bottom tier

o Decentralization:
Decentralization also called departmentalization is the policy of delegating decisionmaking authority down to the lower levels in an organization, relatively away from and lower in a Central authority. A decentralized organization shows fewer tiers in the organizational Structure, wider span of control, and a bottom-to-top flow of decision-making and flow of Ideas.

Decision Making System of Nishat Chunian:

The decision making system of NISHAT CHUNIAN LIMITED is in between the centralized and decentralized. In past it was fully centralized but as time is passing and the organization is expanding and getting larger day-by-day the decision making system is getting decentralized. Right now some of its policies are made by only top management and in some lower management is also included so the system is not purely centralized not decentralized.

37

18. PERFORMANCE APPRAISAL

Performance appraisal concerned with determining how well employees are doing, communicating that information to employees and establishing a plan for performance improvement The jobs are evaluated on yearly basis under superior evaluation method. The competent employees are rewarded in shape of promotions, bonus, increments and annual holidays. The results of an appraisal can be used to identify areas for further development of the employee. The method used to evaluate employee s performance consists of 20-25 questions about the behavior of the employee, and then on the basis of these answers personality of the employee is judged.
Use strongly agree , Disagree , Somewhat agree , Agree , Strongly agree or Not applicable to answer questions below

1. I am fully aware of my employer s business strategy _________ 2. I fully understand what my employer is trying to achieve in business management and customer satisfaction_________ 3. The department I work in gets sufficient support from the Human resources department_________ 4. The promotions in the department I work in have been fair and result-oriented_________ 5. I get sufficient compensation for the work I do in the company_________ 6. I am fully at peace with my job_________ 7. I am adequately motivated for my work_________ 8. My manager is fun to work with since he/she encourages innovation and creativity_________ 9. There is minimal fear of failure in my department and therefore we are free to experiment on various things_________ 10. My supervisor or manager shapes relations and job attitudes within my department_________

38

19. Motivation
Nishat Mills use compensation process in which Nishat Mills wants to satisfy the individual need of employees and to make the employees work with the organization. The company use cash and non cash rewards to motivate its employees. The company uses the following ways to retain the employee  Promotions Promotion is direct shift only to the next level from the current grade, the Employee s performance is evaluated and if his performance is above average he is given promotion.

In Nishat two things are counted to give promotion

1-Experience 2-Performance

 Increments

39

The company decides at the end of the financial year, according to its financial condition, whether increments should be given or not. Once the increment is decided, it is effective from January of each calendar year.  Free transport Nishat Mills provide free transport to local employee and also to their children for school

 Medical facility Nishat Mills provide free medical facility to workers depending upon the position/rank of the employee.  Free housing They give the facility of free accommodation for all level of employees, again the facility is provided according to the position.

40

20. Swot Analysis:

SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths, Weaknesses, Opportunities, and Threats. A scan of the internal and external environment is an important part of the strategic planning Process. Environmental factors internal to the firm usually can be classified as: Strengths (S) Weaknesses (W), And those external to the firm can be classified as Opportunities (O) Threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The outcome from a SWOT Analysis enables organizations to focus on strengths, minimize weaknesses, address threats, and take the greatest possible advantage of opportunities available.

41

The SWOT Matrix

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm s strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account the SWOT profile, a matrix of these factors can be Constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below S-O Strategies pursue opportunities that are a good fit to the company's strengths. W-O Strategies overcome weaknesses to pursue opportunities. S-T Strategies identify ways that the firm can use its strengths to reduce its vulnerability To external threats. W-T Strategies establish a defensive plan to prevent the firm's weaknesses from making it Highly susceptible to external threats.

42

SWOT ANALYSIS OF NISHAT CHUNIAN:

Strengths:
 NCL s strengths are its resources and capabilities that can be used as a basis for Developing a competitive advantage.  Nishat Group is the largest group in Pakistan in terms of sales, which were Approximately Rs.16 billion (US$ 400 million equivalent) last year.  NCL is in businesses namely power generation and textile.  Our textile division, Nishat Chunian has a spinning capacity of 144,803 spindles Located in 5 units.  Due to having setups at difference locations, we have a benefit of utilizing Infrastructure like roads, electricity load, BMR etc)

43

 The product range is 100% cotton yarn, ranging from 6/1 to 30/1 in carded yarns and From 12/1 to 100/1 in combed yarns.  In addition to the above we are also in core spun stretch yarns of 2 and 3 ply yarns and Slob yarns. The total capacity is 59 million lbs of yarn per annum

 The weaving capacity is 293 air jet looms wider width.  The fabric is being exported to various companies in Hong Kong, Japan, Korea, USA, South Africa, India and Europe.  The company believes in product innovation and has successfully leveraged its strength In yarn manufacturing to make a variety of fabrics.  NCL timely adds value to its product like addition of dying facility and home textile Manufacturing (mention the year of operations)  Sales comprises more than 80% as export which saves in taxation  Internal cost controls  Most optimum cost of financing and exploration of for-ex transactions like hedging and Forward booking  NCL Textile Industry is an Independent & Self-Reliant industry.  Availability of abundant Raw Material helps to control costs and reduces the leadtime Across the operation.  Availability of Low Cost and Skilled Manpower provides competitive advantage.

44

 Large varieties of cotton fiber are available and have a fast growing synthetic fiber Industry.  NCL has large and diversified segments that provide wide variety of products.  Growing Economy and Potential Domestic and International Market.

 NCL has Manufacturing Flexibility that helps to increase the productivity.  Qualified and skilled management  Health working environment  Produces greige fabric for apparel, sheeting, home furnishing and fancy items in 100% Cotton, Polyester Cotton (PC) and Chief Value Cotton (CVC).

 Fabric for apparel has been consistently catering to the demands of the export markets As well as the local garment industry.  In sheeting we have successfully made sheeting fabric with counts up to 400 threads Using Ne 100/1. This high-count fabric is one of its kind and of unmatched quality.  With rising demand for fancy items, NCL has also ventured into producing items like Slob yarn fabric and stretch fabric.  NCL now ranks among the first rate stretch fabric producers in the national and the International markets

Weaknesses

45

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:  NCL Textile Industry is highly Fragmented Industry.  NCL Textile Industry is highly dependent on Cotton.  Lower Productivity in various segments.  There is Declining in Mill Segment.  Lack of Technological Development that affect the productivity and other activities in whole value chain.  Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time.  Unfavorable labor Laws.  Lack of Trade membership, that restrict to tap other potential market.  Lacking to generate Economies of Scale.  NCL has to pay Higher Indirect Taxes, Power and Interest Rates.

Opportunities
The external environmental analysis may reveal certain new opportunities for profit and Growth Some examples of such opportunities include:  Growth rate of Domestic Textile Industry is 6-8% per annum.  NCL has a Large, Potential Domestic and International Market.  Product development and Diversification to cater global need  Elimination of Quota Restriction leads to greater Market Development.  Market is gradually shifting towards Branded Readymade Garment.

46

 Increased Disposable Income and Purchasing Power of Customer opens New Market Development.  Emerging Retail Industry and Malls provide huge opportunities for the Apparel,  Handicraft and other segments of the industry.  In NCL greater Investment and FDI opportunities are available.

Threats
Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

 Competition from other developing countries, especially China.  Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world.  Elimination of Quota system will lead to fluctuations in Export Demand.  Threat for Traditional Market for Power loom and Handloom Products and forcing them for product diversification.  Geographical Disadvantages.  International labor and Environmental Laws.  To balance the demand and supply.  To make balance between price and quality

47

In Order to solve the problem the company must fire those employees who are giving continuous poor performance in spite of job rotation and training. Company must use external recruitment firms like Personnel consultancies, Management recruitment consultants, and Executive search firms to hire the best employees as these companies are the expertise. The Nishat Mills must not hire the retired employees on contract and give more and more chances to the new talent. Nishat Chunian Ltd needs to improve its advertisement campaign as the results shows that the company advertisement process is not very effective and the best candidates are not attracted. Company also needs to motivate its employees in a better way like bonus commissions promotions and increment at the same time.

The result of performance appraisal should be discussed directly with the employees and should be kept up-to-date with their both negative and positive aspects. This can be done by arranging meetings etc.