Professional Documents
Culture Documents
Submitted To:
Submitted By:
SALMAN AWAN
MI-107-030
ACKNOWLEDGEMENT ........................................................................................................... 1
INTRODUCTION ....................................................................................................................... 3
i
Table of Contents
ΑΒ ii
Table of Contents
Table of Contents
7. SERVICES ............................................................................................................. 73
7.1 SERVICES HIERARCHY ...................................................................................... 73
7.2 CUSTOMER CARE CENTER .......................................................................... 73-75
REFRENCES ................................................................................................................................. 83
Appendices
Appendix A ...............................................................................................ABSENCE FORM
Appendix B ................................................................. ACCEPTANCE OF RESIGNATION
Appendix C.................APPOINTMENT FOR EMPLOYMENT INTERVIEW & TESTING
Appendix D ............................................................... TERMINATION OF EMPLOYMENT
Appendix E ......................................EMPLOYEE EMERGENCY NOTIFICATION FORM
Appendix F ........................................................................... ACCEPTANC E OF TENDER
Appendix G ......................................................................................JOB ANALYSIS FORM
Appendix H ........................................................ LETTER TO CONFIRM EMPLOYMENT
Appendix I ....................................................................................................... QUOTATION
ΑΒ iii
Table of Contents
Table of Contents
LIST OF TABLES
TABLE 3: RELATIOSHIP B/W PER CAPITA ICOME & EW MOTORCYCLE PURCHASE……19
ΑΒ iv
Table of Contents
Table of Contents
LIST OF FIGURES
FIGURE 5: RELATIOSHIP B/W PER CAPITA ICOME & EW MOTORCYCLE PURCHASE......19
ΑΒ v
Table of Contents
ACKNOWLEDGEMENT
Throughout six weeks duration of my internship period I got tremendous support from all
the staff at AHL (plant and sales office)
office), they helped me in every possible way.
Dr. Usman Zafar and Mr. Atif Rana ((internship coordinator) have been great motivators
and supporters of me for last 2 years
years.
Page 1 of 83
EXECUTIVE SUMMARY
Page 2 of 83
INTRODUCTION
I am about to complete my MBA degree and after that I will start my practical life and
looking at the grim employment situation worldwide it’s imperative to have something
extraordinary in you. For that particular reason I selected the internship so that I can
have a practical experience of what I will be doing for rest of my life. It was a sheer
proud to have done my internship with Atlas Honda.
Before starting the internship I was speculating a tense office environme
environment with no
respect for internee, but re
really
ally I was absolutely wrong about it as I entered the Honda
premises. Of course there is a big influence of Japanese Culture but still to promote that
culture is a difficult task. It was one of the most important experiences of my life where I
learnt:
5. Balance of authority.
Limitations:
Being internee I was limited to specific departments, material and working procedure. I
had no authority so I was not responsible for anything; this is great if you do not want to
learn anything. But if you want to learn something you should be made respon
responsible for
different things so that you should feel yourself a part of the organization and then you
will be able to add something to their culture. I would not call it a restriction by company
but to be very precise it is a drawback of internship process.
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1. ORGANIZATIONAL GOALS & ACHIEVEMENTS
Vision:
Mission:
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.
Quality:
To ensure that our products and services meet the set standards of excellence
Local Manufacturing:
Page 4 of 83
Technology:
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:
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
Page 5 of 83
Page 6 of 83
1.2 MILESTONES OF THE COMPANY
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Page 8 of 83
1.3 CODE OF ETHICS
Atlas Honda Limited (AHL) 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 ttrust
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 w
work
ork 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 term
termss of price and quality. Products
and services will be accurately and properly labeled, advertised and
communicated.
Page 10 of 83
2. INDUSTRY REVIEW
Following part of the project has been taken from a research study conducted by
Competitiveness Support Fund (CSF) which is a joint venture of the Ministry of
Finance (MoF), Government of Pakistan and the United States Agency for
International Development (USAID) on December 12, 2006.
The CSF has been established to support Pakistan’s goal of a more competitive
economy by providing input into policy decisio
decisions,
ns, working to improve regulatory and
administrative frameworks and working to enhance public
public-private
private partnerships within
the country. The CSF will also provide technical assistance and co
co-financing for
initiatives related to innovation and competitiveness
competitiveness,, the private sector with research
institutes, universities and business incubators that contribute to creating a knowledge
knowledge-
driven economy.
After showing a compounded growth rate of 58% in the past 5 years, sales of new
motorcycles in Pakistan appear to b
bee stagnating at between 750 – 775,000 units per
annum. This Report titled “Policy Analysis on the Competitive Advantage of the
Motorcycle Industry in Pakistan: Problems & Prospects” aims at identifying:
• The reasons behind the rapid growth in the past 5 yyears.
• Problems being faced by the key stakeholders, namely the Original Equipment
Manufacturers, the component and parts industry and the final consumers.
• Implement able solutions and their impact.
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2.1 BACK GROUND
The auto industry of which the motorcycle industry is a part has got deep backward
(metals such as steel, aluminum. Copper, rubber, chrome, nickel, plastic, paint, glass,
textiles, electrical, capital equipment, trucking, warehousing) and forward (dealerships,
retailers, banking, credit and financing, insurance, logistics, advertising, repair and
maintenance, petroleum products, services, parts) linkages as such any major shifts in
demand are felt in a variety of other industries.
The development of China as the major player in the global motorcycle industry has
been achieved by linking its strong domestic demand to the abundance of low
technology
chnology dependent manufacturing or cloning.
Pakistan faces a similar situation with its current suppressed demand. As compared to
other industries in which competitiveness can only be achieved with high levels of
human capital, the motorcycle industry is more concerned with better management of
human resources and high levels of productivity at all levels, i.e. OEMs as well as parts
and component manufacturers.
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2.2 RESEARCH METHODLOGY
Step 1: Orientation session with the CEO of CSF to develop a better understanding of
the requirements of the study.
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2.3 THE GLOBAL MOTORCYCLE INDUSTRY
Global motorcycle production increased from 30 million units in 2004 to 40 million units
in 2005 with China alone producing 17 million units. The second largest producer was
India with 7.7 million units while Pakistan came at number seven with a production of
751,000 motorcycles or about 2% of the global total.
The World market for motorcycles is dominated by the Japanese brands, namely
Honda, Suzuki, Yamaha and Kawasaki. Although Japan itself produced only 700,000
motorcycles, its brands with strong presence in the Low Cost Countries (LCC) like
China, India, Indonesia, Thailand etc., control 50% of the world market.
Even in China where the local Chinese brands control more than two thirds of the
market, the basic designs are still modeled round the popular Japanese models. Indian
companies like Hero Honda and TVS rely heavily on their Japanese partners for basic
ns and model innovations. This is perhaps because of the fact that R&D for
designs
Page 15 of 83
the industry is both expensive and time consuming. The Japanese
manufacturers named above have both the financial muscle as well as the
technical capability to undertake the require
required R&D.
In Pakistan, motorcycle assembly started in 1964 when the local Atlas Group started
assembling Honda motorcycles in Karachi. Currently in addition to Honda, the other
Japanese brands being manufactured in Pakistan include Yamaha and Suzuki. The
most successful design among the Japanese brands has been the Honda 70CC which
enjoys tremendous popularity on account of its fuel economy, resale and low
maintenance features.
The Non-Japanese OEMss entered the Pakistani market in the late 1990’s by introducing
clones of the popular Honda 70CC motorcycle using critical parts and components
imported from China. For the basic frame and other low tech parts they used the local
vendors (part suppliers) whose development had been facilitated by the Government of
Pakistan’s indigenization / localization programs for the motorcycle industry. Other than
the original 3 Non-Japanese
Japanese OEMs who became PAMA members, the new entrants
preferred to form their own tra
trade
de bodies and as such are referred to in this study as
Non-PAMA members.
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Presently there are 43 OEMs producing various brands of motorcycles. Out of these 6
are PAMA members and the remaining 37 Non
Non-PAMA
PAMA members. The Engineering
Development Board (EDB) issues
sues licenses to the OEMs for undertaking assembly
operations. The Pakistan Standards & Quality Control Authority (PSQCA) is
responsible for monitoring the production of quality products by the OEMs. As such both
the EDB and the PSQCA play an important rol
rolee in the establishment, licensing and
monitoring of the technical operations of the motorcycle assemblers.
The entry of the Non-PAMA
PAMA OEM’s with a competitive price difference of approximately
25% (Rs.52,000 Vs. Rs.68,000 for the Honda 70CC in 1999) and con
continuous price
reductions (2006 price for av
average Non-PAMA
PAMA OEM 70CC clone was Rs.40,000 Vs.
Rs.54,000 for a Honda 70CC). This has seen the total motorcycle market increase from
120,627 in 2001 – 02 to 751,667 in 2005 – 06. Following Table shows the sales
increases
creases in the past 5 years.
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Although the number of assemblers has increased from 3 to 43 the PAMA members
continue to hold the dominant market position with 79% of the market share with Atlas
Honda alone accounting for 55% of all new motorcycles sold in Pakistan.
With the increase in production, the prices of motorcycles have come down
considerably. In 1999 – 2000, the price of a Honda 70CC motorcycle was Rs.68,000.
The same year the Non-PAMA
PAMA OEMs supplied 70CC clones for Rs.50 – 52,000. In
order to compete with the Non
Non-PAMA
PAMA OEM products, Atlas Honda and other PAMA
members considerably reduced prices. As a result of these price reductions, the Honda
70CC is currently selling at Rs.54,000, Non
Non-PAMA
PAMA member clones are available in the
Rs.35 – 42,000 range. If this trend in prices continues, the market is likely to expand
further.
Page 18 of 83
Following Table shows a positive trend between increases in per capita income and
motorcycle sales. Internationally a positive relationship has been seen between per
capita income increase and new motorcycle ownership.
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Per capita income in Pakistan has increased in the past 5 years at an average annual
rate of approximately 14.0%. The economy is projected to continue to grow at more
than 7.5% in the coming
g decade. Assuming an annual decrease in number of persons
per new motorcycle purchased in the next 5 years at 14% demand for new motorcycles
in the coming years may be forecasted as shown in the following Table.
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2.5 ORIGINAL EQUIPMENT MANUFACTURERS AND
STAKEHOLDERS
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Market Shares of PAMA & NON
NON-PAMA
PAMA Members:
Members
The total installed capacity of the industry is 1.31 million units as stated earlier. Above
chart shows distribution of capacity by OEM membership and Model:
Model
Page 22 of 83
2.6 COSTING OF CHINESE MOTORCYCLES
Non- PAMA industry is intensively Chinese oriented and they are managing a price
lower than the PAMA member companies. No doubt price is very low but they lack
quality in big way so let us see how they manage to make such cheap motorcycles.
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2.7 INCIDENCE OF TAXATION
Currently there is a very high rate of indirect taxation on the manufacture and sale of
Motorcycles. On a CD70CC the total incidence of Indirect Taxation is around Rs.17,124
as shown in the following Table:
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2.8 REGIONAL COMPETITORS ANALYSIS
CHINA
INDIA
The Indian industry enjoys the following benefits in pursuit of its export strategy:
Strong
ng domestic demand of more than 7.2 million units
Vibrant component manufacturing industry with a strong technical base
Comprehensive consensus built road map for development of both OEMs and
component sector through both SIAM & ACMA
Most raw material locally available
Strong presence in regional and African markets
Japanese OEMs exporting local JV production, also participating with local
companies in forming JVs in third countries
Strong manufacturing capability, eyeing the quality conscious European markets
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THAILAND
VIETNAM
The Vietnamese industry has emerged stronger after the recent failure of a
large number of smaller companies where the number of producing units
came down from 60 to 12. The current export strategy being followed by
Vietnam includes:
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2.9 MOTORCYCLE PRODUCTION POTENTIAL IN PAKISTAN
ATLAS HONDA:
In anticipation of being able to export from Pakistan, Atlas Honda has taken
the following measures:
Setup a new world class production facility near Lahore which can
assemble
semble a motorcycle in 35 seconds. This is regarded as one of the
most modern Honda plants worldwide
Atlas Honda has successfully negotiated global rights with Honda
Japan to export the 70CC motorcycle and regional rights for the
125CC motorcycle
Honda Japan has acknowledged the quality standards and
commitment of Atlas Honda
DAWOOD YAMAHA
Increased plant capacity from about 72,000 units to 100,000 units per
annum.
Negotiated with Yamaha exclusive marketing rights for Afghanistan
and exported
xported some units in 2005. Dawood Yamaha has not been
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refunded customs duty by the CBR on CBUs exported to
Afghanistan.
The local
al sponsors of Dawood Yamaha have setup Baluchistan
Engineering, a most modern motorcycle component manufacturing
unit
SUZUKI MOTORCYCLES
Page 28 of 83
2.10 PROBLEMS FACED BY COMPONENT MANUFACTURERS &
THEIR SOLUTIONS
Survey of the component manufacturers supplying to both the Japanese and the
Chinese OEMs revealed a number of problems being faced by them. The following
paragraphs contain a summary of the problems being faced along with their solutions.
The percentage signs in brackets indicate % of respondents who felt that this was a
major problem.
Problem # 4: Cheap under invoiced imports are damaging the local vendor industry
(95.0%)
Solution: Formulate and implement mechanism for fair valuation of imported parts
through a committee comprising representatives o
of EDB, Customs, OEMs and
PAPAAM. The local component industry is effectively out of the Replacement Parts
market because of the availability of under invoiced parts. In addition there is no
guarantee that the parts which are imported are of the required qu
quality. The
manufacturer or importer in most cases cannot be traced in case any part fails
Page 29 of 83
Problem # 5: Locally available raw material is expensive as compared to regional
competitors (91.0%)
Solution: Form vendor buying coops to reduce cost by buying in bulk
Problem # 6: Sales Tax and other government departments are victimizing the local
vendor industry (77.0%).
Solution: Increase contacts between component manufacturers and relevant
departments, EDB can act as mediator.
Page 30 of 83
DEPARTMENTS
UNDER STUDY
DURING
INTERNSHIP
1. Human
uman Resource Department (3 Weeks)
2. Administration & I.R (1 Week)
3. Spare Parts (3 Days)
4. Institutional Sales (1 Week)
5. Services (3 Days)
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Human
Resource
Department
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FUNCTIONS OF HUMAN RESOURCE DEPARTMENT
This includes activities like giving ads on appropriate media so that potential candidates
are attracted and after acquiring a pool deserving candidates are selected purely on
merit basis.
Selecting a good employee is not enough till he is trained to give his best for the
organization. To make him more useful for the organization an induction process is
done at AHL.
3. Performance Appraisal
Now when an employee is trained and he has performed his job for a certain period
then company has to identify if that person is doing his work according to job description
so they conduct performance appraisal.
4. Compensation
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3. RECRUITMENT & SELECTION PROCESS
Approval Probation
Medical
Evalation
Advertisment 2nd
Interview
Confirmation
1st
Pool Interview
Short
Written
Listing Test
/Screening
Page 34 of 83
3.1 STANDARD OPERATING PROCEDURES (SOPs) &
RATIONAL FOR RECRUITING & SELECTION
Ad is prepared by Manager HR but the Final selection of staff of grade 11 and above is
done by CEO while the final selection of staff of grade 12 or below is done by Director
HR.
CEO issues letters of appointment and salary documents with a copy to HR Department
and another copy to Corporate Office.
At very first step HR department receives a requisition slip from the department
requiring a new employee this goes to HR manager. HR manager brings this in notice of
GMHR who is the approving authority for the recruitment and selection process. Once it
is approved by GMHR an advertisement is given in the pre decided mediums. As soon
as public gets to know about the vacancy they send in their CVs the pool of these CVs
is short listed and a letter for the written test is sent to the candidates.
Candidates who pass the written test are then called for two interviews and remember
eliminated.. Whoever passes 2nd interview is
after first interview candidates are eliminated
subjected to a medical examination and success in that medical examination will make
you on probation
bation employee at AHL.
a. INDUCTION PLAN
The induction program for joining employees is necessary as per new training policy
approved by GEC.
1. Up to grade 11
2. From grade 12 and above
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HR Department of every company will find out a mentor from each department who will
organize the induction in his department. There will be an overall mentor who will keep
liaison with new employee to make him comfortable during induction period so that h
he
can focus on the main objective of this program.
Program- 1
Up to grade 11:
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Duration of Induction
HR 1 Day
Other departments 5 Days
His own department (depends on size and location) 1 ~ 7 Days
The company HR will issue his induction program. The incumbent will submit his
induction experience to HR Manager. His report will be studied and if it is useful will be
presented in Managers meeting after the approval of CEO. Half an hour presentation
will be enough.
Program – 2
The incumbent’s job will be at middle /senior management level and requires routine
decision making so he should be equipped with good knowledge of his job and fair
interaction with all his peers and department managers. He should have fair knowledge
of group companies specially related to his job.
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5. All necessary info regarding timings, uniform, canteen and transport etc
6. Visit of all the departments for 3 hours each in which specifically the
related employees will brief about his respective departments in routine
business.
Duration of Induction:
HR 1 Day
ay
Other departments 5 Days
ays
His own department (depends on size and 1 ~ Day
D
location)
Group Companies 3 Days
ays
Total duration 10 ~ 11 Days
The Company HR will issue his induction program. The incumbent will submit his/her induction
experience to GMHR of his company. His report will be studied and if it is useful will be
presented in Managers meeting after the approval of CEO. Half an hour ppresentation will be
enough.
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4. TRAINING & DEVELOPMENT
In an effort to serve employees better and to develop them for the upcoming roles at
AHL, we work to:
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• Assess employee training and development needs regularly, in an effort to
improve employee performance.
• Provide employees with a reasonable number of eq
equitable
uitable and consistent
training and development opportunities.
The objective to assist supervisors and managers lies in the following area
a. Objective
To help each individual, in the interest of the Company and himself, to do his present
job more effectively and to help him equip himself for higher responsibility to reach his
optimum potential.
b. Policy
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subordinates. A Manager’s contribution in this respect is an important consideration in
his own appraisal by his superior. Each General Manager mus
mustt personally actively
participate in fulfilling the training needs of his subordinates with particular attention to;
i. Formal training courses, both inside and out side the company, should only be a
part of a Manager’s over all plan for the development of his subordinates.
Informal day to day on the jo
jobb coaching must be regarded as the most
important part of a Manager’s responsibility in training.
ii. Corporate HR department has an advisory role in providing Line Managers
whatever advice / assistance they may require. In particular, opportunities wil
will
be provided to line Managers for improving their Training Skills.
iii. Formal training should be in the form of in
in-company
company courses /seminars as far
as possible.
c. Implementation
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4.4 TRAINING PROCESS
Report by
Performance Gap Training Need
Immediate
Identified Assessme
Assessment
Supervisor
Analysis of Pre
Post Training
Training Report and Post Training
Performance
Performance
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4.5 STANDARD OPERATING PROCEDURES (SOPs) &
RATIONAL FOR TRAINING & DEVELOPMENT
Any new employee is never familiar with the culture and working conditions of a new
company, to make him feel at home socialization and training is important. At AHL
socialization is done during the induction stage while some part of training for new
employees is done also.
What if an employee is been working for some time and if he starts performing bad,
there should be some measure for that and it is covered under training and
development.
Boss of every employee keeps a check on his performance and when he sees a
continuous decline in his subordinate’s performance he can always identify a gap. At
the identification of that gap he extends a report to the Manager HR, who identifies TNA.
He also conducts a cost benefit analysis to determine the importance of skills lacked by
the employee. He then takes this working to the GM who is the training approving
authority. After training
raining has been approved by GM it is now the responsibility of
Executive HR to select the institution of training.
After employee is done with the training that ranges from 2 weeks to a month he is
supposed to submit a report describing his training experience and how training has
helped him overcome his shortcomings.
Now he is allowed to perform again normal working conditions and after a certain period
his performance is checked again. Pre training and post training data is then matched to
see if the training has improved his skills or not.
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HUMAN
UMAN RESOURCE HIERARCHY AT AHL
G.M Human
Resource /
Administration
N.M Human
Resource
Manager
Human
Resource
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Following are the staff work
working
ing at AHL in Human Resource Department
Department. Their name
and designation is described with their job descriptions.
Miss Asma
Manager Human Resource
Responsibilities:
1. Personal Loans
These are the kinds of loan extended to the employees by the AHL. These loans are
given against Provident Fund and are payable in installments.
2. Recruitment
3. Reports
She prepares the reports for Management Committee, Group Executive Committee.
Whenever a meeting is commenced she takes notes of that and prepares a report later
to be circulated among the concerning authorities.
This system includes all work functions regarding H.R and her responsibili
responsibility is to
supervise all functions and to make a report for the National Manager.
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SOPs & RATIONAL FOLLOWED BY MISS ASMA
Being Manager HR she is answerable to NM and GM
GM. While dealing in personal loans
she has to make sure of many documents because it involves monetary issues. When
an employee comes with a request to take loan against his provident fund following
documents are important:
1. Employees Employment Record
2. Provident
ent Fund Documents
She consults the matter with NM and with the approval by NM loan is awarded to the
employee.
Designing of recruitment ad and budget determination is also her responsibility. After
preparing ad within the budget limit the ad is shown to NM and GM and if both agree
with that then the recruitment ad is given through desired medium.
She maintains the record of management committee reports it is her responsibility to
attend the meetings and make a report within a week and then she sends the ccopies of
that report to the CEO and the officials who have attended the meeting.
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Mr. Omer Akram
Executive Human Resource:
Responsibilities:
1. Insurance
i) New Jubilee Life Insurance Company (covers Life & Health Insurance)
ii) Atlas Insurance (covers Accidental Insurance)
2. Job Descriptions:
He also maintains a data bank of all Job Descriptions of all the employees which is
updated as per the requirement of the jobs. Administration and H.R managers ar
are
responsible for updating J.Ds
J.Ds.
Immediate boss reports the performance of his subordinates at the ttime of performance
appraisal. A list of employees needing any kind of training is generated with the
suggestion from the immediate boss of a particular employee. Now this list is handed
over to General Manager and Mangers to identify what kind of training should be given
to which employee. They decide on this Training Need Assessment in the meeting
presided by General Manager Human Resource, Administration & IR.
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SOPs & RATIONAL FOLLOWED BY M
Mr.
r. OMER AKRAM
He works closely with the insurance companies to make sure every employee at AHL is
covered under the promised policy. It is a part of his daily routine to make insurance
company aware of addition and deletion of employees. This process is same for Life &
Health Insurance. While under accidental insuranc
insurancee only test riders are covered so the
family members of that rider are not covered.
Addition is done when:
1. A new employee comes in
2. Employee gets married
3. Birth of daughter or son to any employee
In above case Mr. Omer sends following documents to the insur
insurance
ance company:
1. Proof of above three happenings
2. Employees Insurance Number (if any because in case of new employee
there will be no number)
3. Copy of Insurance Plan
All these documents and a letter by National Manager are sent to the insurance
company through courier.
In response to this insurance company sends an e
e-mail
mail of acknowledgement as soon
as they receive the documents
documents. They send the confirmation documents in next 2 days
while the insurance card is sent within next 2 weeks.
Second scenario is of deletion so a deletion is done when:
1. Employee Leaves
All above addition process will be repeated to cover this deletion.
Atlas Honda follows the concept of MBO management by object; this concept
emphasizes the importance of worker in setting the target. So whenever job description
or new year targets are updated then every employee above grade 11 has to meet
Manager Administration to discuss it on mutual basis. When all job descriptions are
updated this record comes to Mr. O
Omer
mer Akram. Now it is the responsibility of him to
determine whether every employee is following his J.D in the right direction.
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Mr. Syed Zeeshan Haider
Executive Human Resource
Responsibilities:
*Inconvenience Allowance Report: It includes the list of Grade 16 or above who have worked on an off
day or four hours more then the official working hours.
He is mostly responsible for all the attendance issues. Everyday first part of his job is to
retrieve the attendance data from automated machines and then he prepares a report
consisting of the data of all the machines and of all the shifts. GM dem
demands a report of
previous day three shifts.
Workers who go out of the plant have to submit an attendance slip for that at the gate.
Very next day these slips will be on the table of Mr. Zeeshan who has to make sure that
the record of half day leave or full day leave is maintained.
All his activities help to determine that which employee deserves reward for his
regularity.
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Mr. Abdul Haq
Executive Human Resource
Responsibility:
1. Vehicle Insurance
Vehicle insurance is covered by Atlas Insurance. These vehicles are the one owned by
the employees only.
i) Installment
ii) Policy
If an employee wants to purchase a motor cycle or car from the company he has to go
to Mr. Abdul Haq and he will make sure about the presence of following documents.
Page 51 of 83
Human Resource Project
During my time in Human Resource Department I was advised by National Manager to
prepare a report on “Is there
ere any room for improvement in the current Insurance
Policy”?
Current Policy 1:
As per Insurance Clause: Insurance Company is not liable if the insured person is
dead in any terrorism act.
Current Policy 2:
As per Insurance Clause: Insurance Company will not cover the parents of employees
but their wife or children.
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Current Policy 3:
As per Insurance Clause: Under Health Insurance there will be no coverage for the
treatment of Hepatitis.
Page 53 of 83
ADMINSTRATION & INDUSTRI
INDUSTRIAL
AL RELATIONS (I.R)
HIERARCHY AT AHL
G.M Human
Resource /
Administration
Manager
Administration
A.M
Administration
Page 54 of 83
ADMINSTRATION & INDUSTRIAL
NDUSTRIAL RELATIONS (I.R) DEPARTMENT
D at
AHL:
1. Canteen
2. Uniform
3. Traveling
4. Apprenticeship
5. Job Contract
6. Union
7. Industrial Relations
8. Security & Safety
9. Transportation
All these functions are performed by Admin. & I.R specialist team at AHL both
collectively and individually. Now I will explain who performs what in Honda Admin. &
I.R Department.
Following are the staff working at AHL in Human Resource Department. Their name
and designation is described with their job descriptions.
Page 55 of 83
Mr. Rizwan Rasool
Executive Administration & I.R
Responsibilities:
1. Canteen
AHL spends around 1.8 million rupees on subsidized food each month. They have a
promise to provide good quality, mouth watering and cheap food to their employees. For
the food they charge Rs. 50/ month from all employees. Canteen is very spacious with
ventilators around. Macro & some other suppliers supply all the kitchen items to the
AHL.
2. Visits
3. Stationery
Stationery shop at AHL meets the needs of daily stationery. It is opened for two hours
everyday from 8:30 am to 10:30. Personals from different department come with the
Stationary Requisition Book to collect the required items.
4. Uniform
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Every employee gets three white uniforms including shirt and trousers plus a single pair
of shoes (since it can be of any color) per year. If they need more than three uniforms
then they have to purchase their own from any
anywhere.
Laundry facility is also available at AHL; employees can get their clothes washed in as
low as Rs. 1/wash.
Once a menu is prepared it is forwarded to Manager and Assistant Manger Admin. & I.R.
These both gentlemen decide whether to make some changes in the monthly menu.
Any complaints regarding food are fo
forwarded
rwarded to Mr. Rizwan Rasool and he discusses
them with Manager & Assistant Manager Admin. & I.R.
Visits by Japanese and Higher Management are quite frequent and due to the security
concerns now a days there has to be some security plan for these guests. O
Once the
date of arrival of any guest is confirmed either by Fax or E
E-mail
mail or Phone, the
Administration and Security Department works closely to ensure security protection.
They prepare a visit plan most commonly includes; meeting, lunch session and photo
session.
Study visits are also a very frequent issue; AHL receives many Institutional Visit
Requests daily. Now let us see that how this process takes place.
Institution has to send a formal request of Study Visit in the name of General Manager
Human Resource,
ce, Administration & I.R. Once signed by G.M it comes back to Mr.
Rizwan and he sends an acceptance e
e-mail,
mail, letter or phone. He also makes a schedule
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for the visit and makes institution aware of it as well. AHL tries to schedule the visits on
the days when plant is open and working because it makes the educational trip more
meaningful.
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Miss Humaira
Executive Administration & I.R
Responsibilities:
Traveling services include air tickets, hotel rooms and traveling. Higher Management
and Japanese Official move through the airplanes so her first responsibility is to see
who wants to travel and where. For that she contacts the ttravel
ravel agencies to book the
tickets and hotels as well for the stay purpose. This traveling privilege is not for every
one, only Assistant Mangers and above can enjoy this luxury. These officials travel in
business class and stay in five star hotels. For la
last
st year or so due to bad economic
conditions the AHL officials started using economy class which costs almost half of
business class.
In case the cancellation of the ticket is required she makes sure right amount is
deducted with right refund.
ship lies under 1962 ordinance which makes it compulsory for the firms to
Apprenticeship
offer candidates the apprenticeship. It can also be called an agreement b/w the
company and candidate. AHL each year takes 25 students for apprenticeship and gives
them in house training
ning for 3 years. During that time they attend institutes for six months
to complete two batches of study. Apprenticeship candidates are paid half of the basic
salary of permanent employees. A gradual increase is awarded as:
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2nd Year 60% of Basic Salary of Permanent Employees
rd
3 Year 70% of Basic Salary of Permanent Employees
When the apprentice agreement takes place, three copies are generated;
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Mr. Shahzad Sarwar
Executive Administration & I.R
Responsibilities:
1. Industrial Relations
2. Union
3. Job Contract
Industrial relation is very vast in its definition but precisely it’s about the relations within
the industry and employees. Difference of opinion or any dispute can take you to the
court straight away so you got to have some one to take a look at that. Thus it defines
the basic purpose of I.R.
When ever the court calls AHL to the court then a “Power of Attorney” is given to the
Manager Administration & I.R by the General Manager. Some years ago Plant Manager
used to enjoy “Power of Attorney”. This power means that the AMIR will act on the
behalf of the company.
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case of “Absent without permission”. An employee was term
terminated
inated because of absents
without any permission or intimation. He went to the court against AHL now court
ordered AHL to show that how his termination was done. This procedure follows as:
Union:
At AHL five Japanese rules are followed when it comes to the security & safety. These
can be called 5’s.
1. Seiri is the sorting out and discarding of unnecessary items in the work
place.
2. Seiton is the arrangement of necessary items into good order so that they
can be easily selected for use.
3. Seiso is cleaning up ones work place completely so that there is no dust
on floors, machines and equipment.
4. Seiketsu is maintaining ones work place so that it is productive and
comfortable by repeating Seiri
Seiri-Seiton-Seiso.
5. Shitsuke is training people to follow good work habits and strict
observation of work place rules.
It is not necessary to follow them only in case of security and safety but they can be
followed at the work place at any time.
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Security:
Theft at AHL plant and DCC store was once an issue but with the passage of time they
have improved to such a level where there is almost zero theft possibility. It has become
possible sheer because of effective “Security Guard Patrolling” and very impressive
“RFID Reader”. Now let us go into the deta
details
ils of this “Security Guard Patrolling” system
that how it works.
To rotate these guards in effective manner a “Monthly Duty Chart” is prepared which
shows the duties of all guards for all shifts. In case a guard has to be absent on a
particular day, security officer will make sure next shift guard will be available on current
shift as well. In this case a guard will be doing a double duty so he will be compensated
accordingly.
Night time at plant is a challenge for security and that is when they use this device
RFID reader. Patrolling guards keep tthis
his device with them during their duty at plant.
They go around the plant on a mapped track and on their way they use this RFID device
on electric booths which notes the time. At morning RFID device is scanned to get the
night data recorded by guards. It iis
s then feed into the computer and a generated report
is sent to the Manager Administration & I.R.
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Safety:
AHL has generated its own “Manual for Safety & Environment” that explains every thing
in case of some emergency.
“Pakistan Institute of Quality Control” is the safety training institute for AHL. This
institute conducts fire training sessions at AHL plant to make employees aware of the
dangers not visible. During training sessions they:
FASTAC (Fire & Security Training Center) offers First Aid Training Course which was
attended by the relevant employees of AHL.
Recently “Rescue 1122” were invited to AHL Sheikhupura Plant to give some know how
about
bout First Aid to all the employees.
Not only AHL arrange such activities but also they have also ensured safety measures
to get ISO certification.
Transportation:
AHL plant is at 26/27 km Lahore – Sheikhupura road so it is very hard for the
employees to
o reach there at time. For the convenience of their employees they run 80
vans on 121 different routs covering Lahore, Sheikhupura, Sanglahill, Ferozabad. AHL
charges Rs. 125/month for the transportation.
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They make sure that the employees reach at plant a
around
round 7:30 am so that they can
start working at 7:45 am for this reason they prefer drivers who live near the starting
point of the route.
They not only make sure that employees reach the destination but also that they reach
safely and they have made a co
code
de of conduct for the travelers and drivers;
Now the question arises how they make sure that no violation is going on, for that they
nominate a traveling employee to be the monitor. Monitor makes sure that driver and
travelers are following code of conduct.
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5. INSTITUTIONAL SALES
Vice President
Marketing
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5.2 INSTITUTIONAL SALES PROCESS
Personal Purchase
Inquiry Quotation Order
At first step purchasing institute inquires about the prices and product and most
probably he asks for the quotation. This quotation is prepared and signed by Manger
Institutional Sales which shows all the terms and conditions.
Once the customer is ready to purchase he send in a p
pay order along with a document
of specifications he requires.
On receipt of pay order motorcycles are booked for that institution and delivery is made
within stated time or two weeks.
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6. SPARE PARTS
Responsibilities:
Meeting the demand of the spare parts in the market and to make new dealers by
exploring new markets.
Vendors occupy the market because there are thousands of different vendors providing
industry with required components. Vendors lead the market share with a big lead.
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6.1 SOPs & RATIONAL FOLLOWED IN SPARE PARTS
5s DEALERS:
In the past Honda allowed the dealership even for 1s but now they want to strengthen
their dealership network so they now only form 5s dealerships as:
1s Sales
2s Service
3s Spare parts
4s Special sales (installments or leasing)
5s Exchange facility
These 5s dealers deal in all the above categories and the reason for that is customer
can get all the facilities regarding Honda motorcycles under one roof.
a. HUMS STRATEGY
5s – Exchange Facility:
ility:
It is relatively a new concept in automobile industry it works under a concept known as
HUMS Dealers.
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CONCEPT
BENEFITS TO AHL
Phase-I
At present, the contribution of exchange in sales is 4%, and by introducing HUMS, it will
raise to 6%. We are linking 20 HUMS with 5
5-ss Dealers in 15 cities during 2008
2008-09
Phase-II
We will increase HUMS in further 10 towns in 2009-10
300 to 325 Sales Dealers
36 to 50 SSP
145 to 155 Warranty Dealers
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b. CRITERIA FOR DEALER MAKING
The criterion is very clear and that is the expa
expansion
nsion of business so before any
anything else
we have to find the answers to these questions:
WHO?
Now the dealer comes into the equation, we have to find what kind of potential deale
dealer
should have to be our part.
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Dealer Facilities:
AHL is always ready to facilitate its Dealers to expand their business for this purpose
they have launched a new facility for its dealers in co
co-operation
operation with Allied Bank Limited.
Bank will provide them the facilities like:
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7. SERVICES
A proactive approach to enhance customer satisfaction and add value to AHL brand
• Will supplement and coordinate the present departments and systems rather
than replace them
• The centre will be as effective as the support it gets from the allied departments
• Will depend on the data base of customers generated by dealership and sales
team
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ow will the centre achieve its goals?
How
• To reach each & every new customer creating a trust between him and the
company provide information and solution to his problems
• Introducing services and products
• Adding to the MIS system to improve marketing effort
efforts
Why
hy is a proactive approach required?
• To reach out to those who are – orr have the potential to be dissatisfied
customers
• To give customers confidence that AHL cares
• Too
oo nurture loyalty through grievance management
• To improve company – customer relationship and to use it to improve sales in all
areas.
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SWOT Analysis:
Strengths:
Backed by a big and financially strong group Atlas Honda Limited
Enjoying 55 to 60% market share at present
Exporting to some countries in Asia
CD 70 is a symbol of success which is already enjoying a big market
share
Honda Japan and Atlas Group are working together in a close
connection
Weaknesses:
Cost cutting is becoming a serious problem in presence of Chinese
Manufacturers
Opportunities:
Threats:
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RECOMMENDATIONS & CONCLUSION
15. Stationary should be given to each shop or department once in the month till
some emergency requirements. There should be a chart of expected demand of
each department.
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16. On Friday there is a break from 1:00 pm to 2:00 pm for lunch and to offer the
prayer. Time is sufficient but in such a large group like Atl
Atlas
as Group, there will be
a mosque inside the factory
factory.
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30. A 15 minutes pre- screening phone call can save hours
ours of our organization's
organization'
time.
31. Define
efine the behavioral characteristics of the person you feel is your ideal
candidate. Finally, list your five - ten key responsibilities and characteristics you
will use to screen out your Applicants initially because some time in 1st interview
we
e find applicant is good but we are bound to reject them on the basis of Age
limit, Expected salary
salary, Cultural misfittiness etc
32. Some
ome time even in final interview no candidate is selected.
33. There is need to have well defined standard of Written Test and n
need to have
very sincere and pure attentions and contribution of relevant department
managers to develop an excellent test which later on evaluated by Manager HR
as per test standards then recommended to proceed or modify it.
34. Induction plan/Orientation process demands a lot of improvement as suggested
below.
35. There is need of separate place or Room along with equipments, which is
purely reserved for newly hired applicant's Selection, Orientation procedure and
preexisting
existing employees training
36. There should
ld be complete pre
pre-defined
defined program along with orientation module
and contents supposed to be highlighted and discussed by every department.
37. HR department require to develop Orientation program and specific course
contents for every department along with co-ordination
ordination of every relevant
department managers, discussed and highlighted during orientation training and
upgraded with the passage of time as for as changes takes place. And should be
handover to every department and its one copy will remain to HR de
department in
orientation program file
38. Every department Manager or Asst. Manager will deliver lecture in training room
by keeping in regard course contents given to their department and then followed
by their department visit to ensure complete practical e
exposure
xposure about their
department role and practices.
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39. Every department's representative will give assignments to new hires followed
by lectures and visits of that department and in response they will make sure
submission of assignments next day which depict
depictss their understanding after visits.
40. There should be very accurate time division of orientation process as per
requirement of every department.
41. First two days of orientation should be based on lectures only given by T
Training
Manager and MHR based on detail
tail introduction and history of AHL, cultural
aspects. Organizational strategic vision, mission, policies and procedures,
workplace environment. Employee compensation, motivation, career path,
promotional policies, and behavioral aspects. Etc
42. Rest of the
e days should be divided as per requirement of departments.
43. Head of every department makes sure exact implementation of orientation
program concerning their department by taking feedback in the form of report.
44. New hires are supposed to give a comprehensive exam at the end of orientation
process arrange and co ordinate by HR department to know about their
understanding and their abilities, performance for any future objectives.
45. According to us our job description is very clear but our all empl
employees are not
doing work purely within their job description, JD is not enough for any employee
to keep them motivated. Because Job description provide an opportunity to
clearly communicate direction and where the employees fits inside of the big
picture Job description set clear statement for what you expect from your people
Whether you are recruiting new employees or posting job for internal applicants,
job description tells the candidate exactly that what you want your selected
person Well-written
written job de
description
scription help organization employees, who must work
with the person hired, understand the boundaries of person's responsibilities.
46. Job description becomes dated as soon as you write them in a fast
fast-paced,
changing customer-driven
driven work environment.
47. Poorly
orly written job description can work as evidence of wrongdoing or wrong
telling.
48. For effectiveness you must regularly look and use job description as part of your
day-to-day work.
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49. Job description that is unused in a drawer, or worst filed in HR offi
office, are waste
of time, they must be integral in your hiring process.
50. So if we want to say our employee is suppose to be familiar all work of his
department this is fact we enforce him/her to do work beyond his/her job
description so there is solution fo
forr that Make certain job description has enough
flexibility so individual "can work outside the box".
51. Make different job description for one employee encompasses all areas of
his/her department but for work he or she can do and let him/her to do work by
following
ollowing one job description for one time or specific period of time, until unless
he/she becomes proficient in his/her work and then replace his/her job
description with another one you have developed already for him/her, in this way
he/she will be familiar
ar with work of whole department and there will be no burden
of additional work as well which may create de
de-motivation
motivation for him/her.
52. Performance Appraisal programs should be revised by following changing trend
and employee’s behavioral elements etc.
53. There
re is gap in training of employees especially for worker level of employee,
there is need to ensure behavioral and technical training of workers by following
performance appraisal after every six months.
54. On Friday there is a break from 1:00 pm to 2:00 pm for lunch and to offer the
prayer. Time is sufficient but in such a large group like Atlas Group, there will be
a mosque inside the factory.
55. Although AHL gives leadership strategies in the market as 5s but there is need
to improve dealers perception, ttowards
owards customer, need is to educate dealer
accordingly and adopt some type of motivation tools to boost up his morale and
loyalty level to company. In this situation dealership given criteria must be so
strict to qualify to generate good dealer network whi
which
ch are the back bone of AHL
or sales pillars
56. As there is not a beaurocratic culture in AHL management is flexible then one
drawback is cross rides one cross his immediate boss and report of upper level
boss which create disturbance so in this management style feedback should be
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vertical but communication in AHL should be horizontal and one should be
answerable to his superior only
57. In AHL environment use of computer is pre requisite but we must try maximizing
to develop paperless environment with in an organization and the people link to
AHL like vendors, or dealers to generate computer generated reports.
58. AHL is a leader in motor bike industry in Pakistan but it should not be proud
enough but to be used on the continuous improvement theory in all its p
policies
59. System, procedure even it should about after period modification to make them
stylish and according to the trends of the market.
60. AHL must create economies of scale in order to develop good quality and
standardized products and to need is to enh
enhance
ance its production level as per
demand
61. On plant there is need to make AHL environment more attractive and
landscaping is to be made to make it dream organization
62. In AHL there should be separate research and development department R and
D for the continuous improvement in all aspects of the business of AHL
63. Employee rotation from one department to th
thee other department for handling
multiple tasks and to train them for emerging situations
64. Technological upgrading within. Short span of time so that plant must to be a
strategic advantage or competitive edge not only in Pakistan but in Asia
65. Instead of all AHL is performing its best in Pakistan. AHL under pin the
economic system and provide it with the required strength and vigor. AHL has
shown strong commitment and response, great confidence in Pakistan. The
operations of the bank are carried on latest computers network, which has
increased the efficiency of the AHL manifold. On the whole the services pr
provided
by the AHL are fantastic
fantastic, as I have worked
d in AHL it seems that the customers
are happy from the services provided by the AHL and they are satisfied. There is
need for reduction in expenditure for the maximizing of profit. The savings should
be invested in the growth of the AHL. Although AHL is p
performing
erforming well it should
invest in other to become the leader in Pakistan economy.
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REFRENCES
Page 83 of 83