ORGANIZATIONAL BEHAVIOR

ATLAS HONDA LTD.

SUBMITTED TO

COL (R) SUHAIL AHMAD

SUBMITTED BY

MUHAMMAD ATIQUE 28S-608 BILAL JAMIL 28S-601

Table of Contents
Executive Summary... 1 Introduction 2 Vision & Mission Statement. 3

Company Profile 3 Management Profile.. 4

Organizational Structure 6 Milestones.. 7 Products Overview Functions... 8 9

Strategic Goals... 9 Quality... 10

Core Competencies 11 Core Values... SWOT Analysis. 11 12

Market Position.. 13 Code of Ethics... 14

Human Resource Philosophy. 15 HR Mission & Objective... HR Functions. Mgmt By Objectives (MBO). Culture... Suggestions Sources of Information.. 15 16-18 19 19 19 20

Organizational Behavior

Executive Summary
Atlas Honda is one of the leading and most growing Automobile (Two wheeler) company of Atlas Group. It is a Joint venture with Honda Motor Co. Japan. The Company is manufacturing and marketing four models of motorcycles. It is growing since 2000 ~ 2001 at the rate of 25 percent per annum. Due to absence or very poor infrastructure of mass transit and public transport, motorcycle has now become necessity of life for a large segment of urban and rural population as well. The companys objective is to maximize profit through providing high quality motorcycles and through gaining the high level of customer satisfaction. In this report companys vision and mission statement is clearly defined. Then companys strategic goals, core competencies and core values are described. In addition companys SWOT analysis are also included in this report. After that organizations different functions are discussed. The companys cultural values are also described and at the end of the report some suggestions are recommended.

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Introduction:
Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh. Atlas Honda Limited manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service. Atlas has undertaken to develop local manufacturing capabilities to the highest, economically feasible level. While a major role in localization has been assigned to vendor industries, Atlas has the countrys largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CDA & CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 14 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has directly executed 5 Joint Venture/Technical Assistance Agreements other than Honda. Atlas management is striving to modernize company operations by adapting applicable aspects of research and theory and more specifically, Hondas unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, systems and processes are changed according to the demands of the customer, growth and new technology. Efforts are being made to develop participation at all levels of personnel in decisionmaking and a substantial and effective delegation has been established at levels where applicable. Various participation programs such as Ala Mayar Quality Circles movement, launched in 1985, are strongly encouraged to allow constructive selfexpression and teamwork. The Company training and development programs encourage all members to develop themselves and contribute to their full potential. Atlas Honda is playing a pioneering role in creating conditions for easy and confident use of motorcycles all over the country. A vast and growing network of over 1600 motorcycles sales service and spare parts dealers has been established. In order to back up this system, Atlas has set up Technical Training Centers in Karachi and Lahore which provide several courses of varying duration and complexity for motorcycle mechanics and users each year. Mobile training facilities take the latest know-how, technology and maintenance of motorcycles to major rural and urban centers around the country.

Atlas Honda Ltd.

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Vision:
Market leader in the motorcycle industry, coming up as a globally competitive center of production and exports CEOs vision is very clear. AHL is currently market leader in motorcycle industry by a wide margin and would definitely like to retain this distinction, with current 55% market share, company is well positioned. However, in future after WTO complete implementation, protection from foreign competition would reduce, as duty on imported motorcycles will be further brought down from the current level of 75%.

Mission:
A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects.

Company Profile:
C.E.O: Plants Locations: Mr. Saqib Hussain Shirazi F-36 Site Karachi 26/27 Km Lhr-Skp Road, Sheikhpura Products: Environment friendly 4-Stroke Honda Motorcycles CD-70 CG-125 CD- 100 CG-125 DLX

Export:

Nepal Srilanka Bangladesh Afghanistan

Annual Capacity:

600,000 Units

Atlas Honda Ltd.

Organizational Behavior

Management Profile:
BOARD OF DIRECTORS Chairman Chief Executive Officer Directors Yusuf H. Shirazi Saquib H. Shirazi Koji Nakazono Nurul Hoda Sanaullah Qureshi Sherali Mundrawala Toshitsugu Kaneko Yoshitaka Kitamura Zaryab Tarique

Company Secretary

GROUP EXECUTIVE COMMITTEE Chairman Members Aamir H. Shirazi Frahim Ali Khan Iftikhar H. Shirazi Jawaid Iqbal Ahmed Saquib H. Shirazi Theresa Dias

Secretary

GROUP PERSONNEL COMMITTEE Chairman Members Yusuf H. Shirazi Aamir H. Shirazi Bashir Makki

GROUP SYSTEMS & TECHNOLOGY COMMITTEE Chairman Members Secretary Iftikhar H. Shirazi Mushtaq Alam Zia Ullah Begg Sarfraz Hassan

Atlas Honda Ltd.

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AUDIT COMMITTEE Chairman Members Head of Internal Audit Secretary Sanaullah Qureshi Sherali Mundrawala Nurul Hoda Aamir Shakoor Khan Ashfaq Ahmad

MANAGEMENT COMMITTEE Chief Executive Officer Vice President Marketing Vice President Technical Chief Financial Officer General Manager Plants General Manager CAMA General Manager Development General Manager Quality Assurance General Manager Human Resource General Manager IT General Manager Logistic Saquib H. Shirazi Nurul Hoda Toshitsugu Kaneko Suhail Ahmed Col. (R) Khalid Aziz Maqsood A. Basraa Yoshitaka Kitamura Lt. Col. (R) Sultan Ahmed Razi-u-Rehman Mushtaq Alam Talha Saad

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Organization Structure
Mgr CAD CAM KHI

Mgr R & D KHI Plant GM E & P DGM E & P Vendor Develop. KHI Plant GM R & D Kitamora VP Tech Kaneko Vendor Develop. SKP Plant

Mgr R & D SKP Plant

Mng. Parts Develop. National Mgr. PPC & Stores GM Plants Manager Operations SKP Manager Projects Planning Manager Operations KHI Plant

Mgr Cost Karachi Plant GM Finance Mgr Accounts SKP Mgr Cost SKP Plant National Mgr Customer Care R Mgr Sales LHR I Mgr Accounts KHI Plant

CEO
Saquib H Shirazi

National Mgr Sales GM Marketing National Mgr Service

R Mgr Sales LHR II

R Mgr Sales South

National Mgr Parts Planning National Mgr Logistics KHI Plant GM Logistics National Mgr Logistics SKP Plant Mgr QA KHI Plant GM Quality Assurance Mgr QA SKP Plant

R Mgr Sales Multan

R Mgr Sales RWL

National Mgr Commercial

MAIR KHI Plant GMHR MAIR SKP Plant Mgr Human Resource

GM CAMA

Mgr CAMA

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Organizational Behavior

Milestones:
The company is engaged in the manufacturing, sales of motorbikes and auto parts. Since its inception the company has experienced an unprecedented growth in its operations from a small manufacturing company to the leading motorbike manufacturer of Pakistan. Following is the chronological order of the major events in the company's history:

2004 2003 2003 2003 2002 2002 2002 2001 2001 2000 1999 1998 1997 1995 1995 1994 1992 1991 1990 1989 1988 1988 1987 1982 1981 1981 1979 1976 1965 1964 1962 1962

Contribution to national exchequer reached Rs. 3.18 billion - 72% of wealth generated, out of Group 7.56 billion (1.48% of the Government total revenues) Major re-adjustment of prices to pass on the benefits to customers Best Corporate Report award by joint committee of ICAP & ICMAP Achievement of landmark sales of 100,000 motorcycles Deletion level reached to 87% and 80% for CD70 & CG125 respectively Introduction of Gratuity Scheme for staff Best Corporate Report award by joint committee of ICAP & ICMAP Concept of 5S dealership - Sales, Service, Spare Parts, Second hand exchange and Special (Credit) sales launched New Block for hi-tech engine plant Investment in Crankshaft Project ISO 9002 certification for both factories New models (MMC) of CD70 & CG125 launched Investment in Gear Project Exports to Bangladesh Export Agreement signed with Honda Motor Company Limited Mr. Kawamoto President, Honda Motor Company Limited, visited AHL Change of name to Atlas Honda Limited (AHL) Inauguration of CG125 Engine Project at Sheikhupura Factory Merger of Panjdarya Limited into Atlas Autos Limited Export of built up motorcycles to Nepal Production capacity expansion III Joint Venture agreement signed with Honda Motor Company Limited Inauguration of CD70 Engine Project at Karachi Factory Deletion Project financed by PICIC Commercial Producton started at Panjdarya Limited Production capacity expansion II Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company Limited Production capacity expansion I Public offering of Shares Commercial Production started Technical Assistance Agreement signed with Honda Motor Company Limited Incorporation of Atlas Autos Limited

Atlas Honda Ltd.

Organizational Behavior

Products

CD-70

CG-125

CD-100

CG-125 DLX

Atlas Honda Ltd.

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Functions:
Human Resource & Administration Finance Supply Chain Production Quality Assurance Engineering & Projects Marketing Research & Development Information Technology

Strategic goals:
Customers:
Our customers are the reason and the source of our business. It is our joint aim with our dealers to ensure that our customers enjoy the highest level of satisfaction from use of Honda Motorcycles.

Local Manufacturing:
To be the industry leader in indigenization of motorcycle parts.

Technology:
To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.

Shareholders:
To ensure health and viability of business and thus safeguarding shareholders interest by maximizing profit. Payment of regular satisfactory dividends and adding value to the shares.

Employees:
To enhance and continuously up-date each members capabilities and education and to provide an environment which encourages practical expression of the individual potential in goal directed team efforts and compensate them attractively according to their abilities and performance.

Corporate Citizen:
To comply with all government laws and regulations, to maintain a high standard of ethics in all operations and to act as a responsible member of the community.

Atlas Honda Ltd.

Organizational Behavior

Quality:
A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects.

Quality Policy:
Commitment to provide high quality motorcycles & parts Right work in first attempt and on time Maintain and continuously improve quality Training of manpower & acquisition of latest technology Safe, clean & healthy environment Market leadership & prosperity for all

Quality Standards:
In Atlas Honda Limited quality has priority over production. By producing the best quality motorcycles we can attain No.1 Customer Satisfaction, fulfilling AHLs goals. Quality is built into our production methods and Systems and it is important that all associates understand and strictly comply with all quality regulations. In order to maintain quality, all associates should be quality conscious, therefore, every one is required to strictly following guidelines. Always remove wrist watches, bracelets etc. before entering the production area. These can cause scratches. Associates working in paint shop must use safety equipments. Dandruff and falling hair can also cause quality defect. If you suffer from these conditions, be sure to consult with your supervisor so that these can be immediately corrected. Dirt and dust are other sources of quality defects, be-sure that you are clean when you enter the production area. Check that you do not have dirt or stains on your body and that your uniform is free of stains, mud, dirt, dust, oil or grease. Long fingernails may cause scratches and other defects, be sure to keep your nails short and clean. Production workers are advised to always keep their hair short and clean. Standardized safety shoes are allowed in the production area, be sure to wear appropriate shoes when working. Eating and drinking material is not allowed in production area.

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Organizational Behavior

5-S Activities:
5-S is a Japanese technique that is used to ensure clean and pleasant work environment. All associates should perform 5-S activities at their respective workplaces. Sort: Set in Order: Shine: Standardize: Sustain: Clear out rarely used items by red tagging Organize and label a place for everything Clean the work place Display the operation standards at every work place Use regular management audits

Core Competencies:
Largest Capacity Motorcycle manufacturing facility Vertically integrated high precision engine parts Flexible manufacturing facility Only company using ED-Paint Coating System Largest nation-wide exclusive Sales and Service network Capable of new model development by local R & D

Core Values:
AHL core values have remained the same through out the years and are as follows: Strongly believe in that Customer is King Respect for individual Winning remain ahead of competition through quality Continuous innovative & Value added services Best return on investment Hard-work & Continuous self-improvement & development Un ambiguous excellence in all aspects of the Company Corporate social responsibility

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Organizational Behavior

SWOT Analysis:
SWOT analysis is a strategic planning used to evaluate strengths, weaknesses, opportunities and threats involved in a project or in a business venture. AHL SWOT analysis are as follows;

Strengths:
Largest manufacturing plant in Pakistan (Global Standard factory) World-renowned HONDA Brand Market leadership with precision quality Largest product lineup with four popular brands CD70, CD100, CG125 and CG125 DLX to meet the future challenges Widespread dealers network Professional management and high skilled staff

Weaknesses:
Low manufacturing ability of vendors to supply parts for 500K motorcycles annually Difficult to maintain high quality production at high market demand Complexity in coordination and communication among facilities, vendors and two geographical locations i.e. Karachi and Sheikhupura plants Slow response or long lead-time from the vendors High warranty claims pressure due to premium price product

Opportunities:
Poor infrastructure of mass-transit. i.e., limited substitution of 2 wheelers Rapidly changing Market dynamics Being a largest manufacturer can enter India, China and other countries as per WTO rules and regulations Purchasing/Buying behavior is changing (more quality conscious) More investors in the vendor business to invest in latest technological specialized manufacturing processes More inflows from the companies, growth in installment

Threats:
Low barrier of entry of major players after WTO implementation Unpredictable frequent changes of government or its policies Bargaining power of suppliers (Vendors) Bargaining power of buyers (dealers/customers) Price war Threats of copy products Substitute services Indian & Chinese entry in Pakistan Market

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Organizational Behavior

Market Position

BRAND HONDA

2006/07 Sales 190,000 58%

2007/08 Sales 287,000 57%

YAMAHA

47,000

14%

70,000

14%

SUZUKI

21,000

6%

25,000

5%

CHINESE

82,000

22%

118,000

24%

TOTAL

340,000

100%

500,000

100%

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Code of Ethics:
Atlas Honda Limited conducts its operations with honesty, integrity and openness, and with respect for human rights and interests of the employees. It respects the legitimate interests of all those with whom it has relationships. AHL is committed to comply with the laws and regulations of Pakistan. AHL is committed to create the working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. AHL is equal opportunity employer, which recruits, employs and promotes employees on the sole basis of the qualifications and abilities needed for the work to be performed. AHL is committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labor. AHL is committed to provide branded products and services, which consistently offer value in terms of price and quality. Products and services will be accurately and properly labeled, advertised and communicated. AHL conducts its operations in accordance with principles of good corporate governance. It provides timely, regular and reliable information of its activities, structure, financial situation and performance to all the shareholders. AHL is committed to establish mutually beneficial relations with its suppliers, customers and business partners. AHL strives to be a trusted corporate citizen and, as an integral part of society, fulfills its responsibilities to the societies and communities in which it operates. AHL is committed to make continuous improvements In the management of environmental impact. It works in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. AHL make innovations to meet consumer needs. It respects the concerns of consumers and of society. It works on the basis of sound research, applying high quality standards. AHL believes in fair competition and supports development of appropriate competition laws. AHL and employees conduct their operations in accordance with the principles of fair competition and all applicable regulations. Compliance with business principles is an essential element. The Board of Directors of AHL is responsible for ensuring that these principles are communicated to, and understood and observed by, all employees. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by Audit Committee of the Board. The Board of AHL expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles.

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Organizational Behavior

Human Resource Department:

HR Philosophy:
The AHL Human Resource Philosophy is based on the conviction that the well being of the company and the well being of its people are one and the same. The company is dedicated to the belief that its most valued asset is its people. Our commitment is to employ on the basis of Merit, Intellect, Integrity and Character to ensure that every employee is treated with dignity and respect and in a fair consistent and equitable manner; to create a stimulating and supportive atmosphere in which they may work; and to aid and encourage them in the realization of their full potential. We recognize that the success of this philosophy depends in the large measure on the manner in which employees at every level carry out their obligations to each other and to the Company. Our philosophy will not work if employees do not have a feeling of mutual confidence and loyalty, as well as respect of each other as human being. In the same context of obligations and mutual trust and confidence, all employees are expected to maintain certain standard in relation to their work, and in representing themselves as employees of AHL. Employees of AHL must be committed to the following principles: Accept total responsibility for the success of the Companys HR philosophy, policies and programs. Have through knowledge of the Companys HR philosophy and programs, and review them with subordinates to ensure their total understanding. Ensure consistent and fair interpretation of personnel policies. Exercise leadership by demonstrating integrity, professional knowledge, the courage of their convictions, and concern for the feeling of others. Establish a relationship with subordinates that encourage a free flow of information in both directions, permit open discussion of differing views and allow decision making at the most appropriate level. Accept and support decisions made contrary to their expressed positions. Apply the highest standards of ethics, integrity and honesty. Comply with Company policies and procedures.

HR Mission:
To inculcate organizational culture which supports optimum performance. Encourage the employees to analyze and evaluate his/her own performance in a realistic manner. Be friendly and supportive to the employees of the company and make them feel relaxed and in a positive frame of mind.

HR Objective:
To achieve the Companys objective the HR Department of AHL will recruit, develop, utilize, evaluate, maintain and retain the right number and types of employees to provide the organization with an appropriate workforce.
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Management Policy:
Proceed always with ambition and youthfulness. Respect sound theory, develop fresh ideas and make the most effective use of time. Enjoy your work and encourage open communication. Strive constantly for a harmonious flow of work Be ever mindful of the value of research and endeavor.

HR Functions:
1. Recruitment and selection 2. Training and development 3. Performance appraisal 4. Motivation 5. Employees services safety, health & welfare 6. Manpower planning 7. Salary administration 8. Industrial relation 9. Communication system 10. Negotiation with union 11. Terms and condition of employment

1. Recruitment and selection:

Forecasting for the vacant positions to be filled Advertisements for vacant positions Receiving applications and complete bio data Building a pool of candidates Short listing the candidates and building a secondary and purified pool Written test 1st interview 2nd interview Final interview Medical test

2. Training and development:

Apprenticeship training Informal learning Job instruction training (JIT) Tele-training Videoconferencing Job rotation Off-Job Trainings: Corporate universities association (LUMS), (PIMS) ATLAS development centers (ADC) seminars Japanese tour for training
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3. Performance Appraisal:
Employees objectives setting Self evaluation Measuring the achievement of objectives Following concern departments recommendations Recognizing the hard work Rewarding the deserving employees

4. Motivation:
Reward System: Company revises salaries of all management staff on the basis of economy inflation and individual performance. Group personnel committee decides inflation rate and salaries of all management staff then increases. Second portion of annual increment is decided on the basis of individual performance. Promotions: Employee is moved whenever vacancy is available. Normally company believes on promotions from within the company.

5. Employees Services Safety, Health & Welfare:

Car/Motorcycle Bonus Gratuity Provident Fund Group Life Insurance Health Insurance/Hospitalization Plan Personal accident Insurance Conveyance & Meal Allowance Compensatory Leaves Inconvenience Allowance Personal Loan Welfare Loan Traveling Allowance Marriage Gift Award on retirement EX-Gratia Grant upon Death

6. Manpower Planning:
Computerized forecasting and planning Human resource information system Qualification inventories Forecasting Techniques Candidates availability Computerized personnel placement Division of labor according to production and shops

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7. Salary Administration:
Upward communication T.M.S (time management system) Leaves adjustment Sandwich deductions Salary slip Transfer of salary in employee account

8. Industrial Relations:
Relations with dealers Relations with internal customers (employees) Relations with external customers Relations with vendors

9. Communication System:
Upward communication Downward communication Parallel communication Mediums of communication Lotus notes (email) Internal communication letter (i.Com) Letters Fax Land lines and mobiles

10.Negotiation with Union:

Increase in basic pay Conveyance allowance Staff welfare loan Gift on marriage of daughter Disability coverage Award on retirement

11.Terms & Condition of Employment:

Probation Duties Transfer within the company Transferred to sister concerns Termination Participation in union activities Registered Medical Practitioner

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Management By Objectives: (MBO)

Every year all management staff prepares their next year objectives and action plan in align with company objectives. These objectives are discussed and approved by immediate supervisor/manager. These objectives also been reviewed by the senior management on half yearly basis. Annual performance appraisal also based on achievement of these objectives and reward recognition follows accordingly.

Culture:
AHL culture is a blend of Pakistan & Japanese culture. Its main characteristics are as follows; Friendly & Safe environment Respect for every individual and recognition Easy access to the Higher Management Openness to share ideas Always welcome to suggestions Equal opportunities for personal growth Same uniform for everyone (White) Same cafeteria and meal for everyone

Recommendations: (In the aspects of OB)

To be a market leader, Quality should be improved in all aspects. HR Mgmt must promote organization culture. HR Mgmt must conduct ethical audit. Performance Appraisal system must be more clear & transparent. There must be a regular system of learning employees the organizational culture. The Mgmt should take initiate in motivational activities. (Positive Reinforcement) At present Reward System is annual based. It should be quarterly to keep employees motivated throughout the year.

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Sources of Information:
Human Resource Deptt. Administration Deptt. Quality Assurance Deptt. Research & Development Deptt. Sales & Marketing Deptt.

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