INTERNSHIP REPORT

Submitted To:

Mr. ATIF RANA

Submitted By:

SALMAN AWAN
MI-107-030

Program: MBA (HRM)

Department of Management Sciences

The University of Lahore
June 10, 2009.
Table of Contents
LIST OF TABLES ....................................................................................................................... iv

LIST OF FIGURES ...................................................................................................................... v

ACKNOWLEDGEMENT ........................................................................................................... 1

EXECUTIVE SUMMARY .......................................................................................................... 2

INTRODUCTION ....................................................................................................................... 3

1. ORGANIZATIONAL GOALS & ACHIEVEMENTS ........................................ 4

1.1 STRATEGIC GOALS ............................................................................................4-6
1.2 MILESTONES OF THE COMPANY ...................................................................7-8
1.3 CODE OF ETHICS .............................................................................................. 9-10

2. INDUSTRY REVIEW ................................................................................... 11

2.1 BACKGROUND .................................................................................................... 12
2.2 RESEARCH METHADOLOGY ....................................................................... 13-14
2.3 THE GLOBAL MOTORCYCLE INDUSTRY .................................................. 15-16
2.4 PAKISTAN’S INDUSTRY ................................................................................ 16-20
2.5 ORIGINAL EQUIPMENT MANUFACTURERS & STAKEHOLDERS ........ 21-22
2.6 COSTING OF CHINESE MOTORCYCLES ......................................................... 23
2.7 INCIDENCE OF TAXATION ............................................................................... 24
2.8 REGIONAL COMPETITOR ANALYSIS ........................................................ 25-26
2.9 MOTORCYCLE PRODUCTION POTENTIAL IN PAKISTAN .................... 27-28
2.10 PROBLEMS FACED BY COMPONENT MANUFACTURERS AND THEIR
SOLUTIONS .................................................................................................................. 29-30

DEPARTMENTS UNDERSTUDY DURING INTERNSHIP ........................................... 31

HUMAN RESOURCE DEPARTMENT ............................................................................... 32

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT ................................................ 33

3. RECRUITMENT & SELECTION PROCESS ........................................... 34

3.1 STANDARD OPERATING PROCEDURES (SOPs) & RATIONAL FOR
RECRUITING & SELECTION ........................................................................................... 35
a. INDUCTION PLAN ......................................................................................... 35-38

4. TRAINING & DEVELOPMENT ........................................................................ 39

4.1 TRAINING OBJECTIVES ...................................................................................... 39
4.2 EMPLOYEE TRAINING & DEVELOPMENT STRATEGIES ........................ 39-40

i
 Table of Contents

4.3 TRAINING POLICY ......................................................................................... 40-42

4.4 TRAINING PROCESS ........................................................................................... 43
4.5 STANDARD OPERATING PROCEDURES (SOPs) & RATIONAL FOR
TRAINING & DEVELOPMENT ....................................................................................... 44

HUMAN RESOURCE HIERARCHY AT AHL ................................................................... 45

MISS ASMA (HR MANAGER) ......................................................................................... 46

SOPs & RATIONAL FOLLOWED BY MISS ASMA........................................................ 47

Mr. OMER AKRAM (EXECUTIVE HR) ........................................................................... 48

SOPs & RATIONAL FOLLOWED BY Mr. OMER AKRAM ........................................... 49

Mr. SYED ZEESHAN HAIDER (EXECUTIVE HR) ......................................................... 50

SOPs & RATIONAL FOLLOWED BY Mr. SYED ZEESHAN HAIDER ........................ 50

Mr ABDUL HAQ (EXECUTIVE HR)................................................................................ 51

SOPs & RATIONAL FOLLOWED BY Mr. ABDUL HAQ .............................................. 51

HUMAN RESOURCE PROJECT ..................................................................................... 52-53

ADMINISTRATION & I.R HIERARCHY AT AHL .................................................... 54-55

Mr. RIZWAN RASOOL (EXECUTIVE ADMIN. & I.R) ............................................. 56-57

SOPs & RATIONAL FOLLOWED BY Mr. RIZWAN RASOOL ................................ 57-58

MISS HUMAIRA (EXECUTIVE ADMIN. & I.R) ............................................................. 59

SOPs & RATIONAL FOLLOWED BY MISS HUMAIRA ........................................... 59-60

Mr. SHAHZAD SARWAR ((EXECUTIVE ADMIN. & I.R)............................................. 61

SOPs & RATIONAL FOLLOWED BY Mr. SHAHZAD SARWAR ........................... 61-65

5. INSTITUTIONAL SALES ................................................................................... 66

5.1 SALES & SPARE PARTS HIERARCHY............................................................... 66
5.2 INSTITUTIONAL SALES PROCESS.................................................................... 67
5.3 SOPs & RATIONAL FOLLOWED IN INSTITUTIONAL SALES ...................... 67

6. SPARE PARTS ...................................................................................................... 68

6.1 SOPs & RATIONAL FOLLOWED IN SPARE PARTS ........................................ 69
a. HUMS STRATEGY ........................................................................................... 69-70
b. CRITERIA FOR DEALER MAKING ............................................................... 71-72

ΑΒ ii

Table of Contents
 Table of Contents

7. SERVICES ............................................................................................................. 73
7.1 SERVICES HIERARCHY ...................................................................................... 73
7.2 CUSTOMER CARE CENTER .......................................................................... 73-75

SWOT ANALYSIS ................................................................................................................... 76

RECOMMENDATIONS & CONCLUSION ....................................................................... 77

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 1: WORLD PRODUCTO OF MOTORCYCLES…………………………………………………..15

TABLE 2: SALES OF MOTORCYCLES I PAKISTA…………………………………………………….17

TABLE 3: RELATIOSHIP B/W PER CAPITA ICOME & EW MOTORCYCLE PURCHASE……19

TABLE 4: PROJECTED DEMAD FOR EW MOTORCYCLES…………………………………………20

TABLE 5: MARKET SHARE OF MAJOR OEMs…………………………………………………………….21

TABLE 6: IDUSTRY CAPACITY BY OEM ORIGI & MODEL………………………………………...22

TABLE 7: COSTIG FOR 70-CC CBU MOTORCYCLE FROM CHIA…………………………………23

TABLE 8: TOTAL TAXATIO DETAIL O OE UIT OF MOTORCYCLE…………………………..24

TABLE 9: DURATIO OF IDUCTIO……………………………………………………………………...37

TABLE 10: DURATIO OF IDUCTIO…………………………………………………………………….38

ΑΒ iv

Table of Contents
 Table of Contents

LIST OF FIGURES

FIGURE 1: ATLAS GROUP COMPAIES……………………………………………………………………6

FIGURE 2: MILESTOES OF THE COMPAY……………………………………………………………7-8

FIGURE 3: RESEARCH METODOLOGY……………………………………………………………………14

FIGURE 4: GROWTH I MOTORCYCLES SALE I PAKISTA……………………………………….18

FIGURE 5: RELATIOSHIP B/W PER CAPITA ICOME & EW MOTORCYCLE PURCHASE......19

FIGURE 6: PROJECTED DEMAD FOR EW MOTORCYCLES……………………………………….20

FIGURE 7: MARKET SHARE OF PAMA & O-PAMA MEMBERS……………………………………22

FIGURE 8: TAX O OE UIT OF MOTORCYCLE………………………………………………………24

FIGURE 9: RECRUITMET & SELECTIO PROCESS…………………………………………………...34

FIGURE 10: TRAIIG PROCESS……………………………………………………………………………43

FIGURE 11: HUMA RESOURCE HIERARCHY AT AHL………………………………………………...45

FIGURE 12: ADMIISTRATIO & I.R HIERARCHY AT AHL…………………………………………..54

FIGURE 13: SALES & SPARE PARTS HIERARCHY……………………………………………………….66

FIGURE 14: ISTITUTIOAL SALES PROCESS………………………………………………………......67

FIGURE 15: SERVICES HIERARCHY……………………………………………………………………….73

FIGURE 16: CHALLEGES 08/09…………………………………………………………………………….75

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

Atlas Honda Limited leads the list of fifty competitors in motorcycle

manufacturing industry in Pakistan due to distinctive quality policy. Their
corporate vision and values are the driving forces and at present Atlas
Group spreads over 11 companies both private and public limited.
Atlas Group is a responsible entity which iiss highly committed to comply with
the corporate, environmental laws and to conduct their business with
utmost honesty and sincerity.
At AHL it is believed that development can only be achieved by equality
and respect at work place. They have been doing it for decades and there
is no doubt they are reaping its benefits.
Human Resource plays its vital role to meeting the employee needs in
collaboration with Administration Department.
AHL has a manufacturing capacity of 1600 units per day under strict
quality standards and their sale network is well spread to sell all of them.
They have a 5s dealer network to satisfy the customer to the optimum level.

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:

1. How to balance your social and work life?

2. You respect others and others respect you?

3. At work place everybody is equally important?

4. Work with honesty and company will regard your efforts?

5. Balance of authority.

6. Team work is more important.

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.

Page 3 of 83
 1. ORGANIZATIONAL GOALS & ACHIEVEMENTS

Vision:

Market leader in the motorcycle industry as a global competitive center of

production and exports.

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;
stry; 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.

1.1 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.

Quality:

To ensure that our products and services meet the set standards of excellence

Local Manufacturing:

To be the industry leader in indigenization of motorcycle parts

Page 4 of 83
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

up-date
date each member’s 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
bilities 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

Page 5 of 83
Page 6 of 83
 1.2 MILESTONES OF THE COMPANY

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:

Page 7 of 83
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.

AHL conducts its operations in accordance with principles of good corporate

governance. It provides timely, regular and reliable informati
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.
Page 9 of 83

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.

nce with business principles is an essential element. The Board of

Compliance
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 ye
year.
ar. 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.

Page 10 of 83
 2. INDUSTRY REVIEW

A GLANCE AT ASIAN INDUSTRY (Yesterday, Today &

Tomorrow):

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.

Page 11 of 83
 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 industry Worldwide has seen a tremendous growth in tthe

he past two years.
Production in 2005 has been estimated at 40.0 million units with China producing 17.0
million units. This global surge in demand has also been felt in Pakistan where the
industry in the financial year ending June 2006 manufactured more tthan 750,000 units.
There are currently 43 Original Equipment Manufacturers (OEMs) in the Industry. These
include 6 OEMs who are members of the Pakistan Automotive manufacturers
Association (PAMA) and 37 OEMs who are not PAMA members. These OEMs are
supported
ed by nearly 2,000 parts and component manufacturing units employing close to
50,000 persons.

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.

Page 12 of 83
 2.2 RESEARCH METHODLOGY

The various steps followed in the completion of this Study include:

Step 1: Orientation session with the CEO of CSF to develop a better understanding of
the requirements of the study.

Step 2: Secondary Data Collection and review, list of literature reviewed.

Step 3: Primary Data Collection mostly related to foc

focusing
using on the problems being faced
by the OEMs, parts and component manufacturers. This involved conducting surveys of
OEMs and vendors as well as having discussions with industry experts and officials of
EDB, PSQCA, CBR and banks.

Step 4: Analysis of the Secondary and Primary data

Page 13 of 83
Page 14 of 83
 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.

2.4 PAKISTAN’S INDUSTRY

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 Pakistan Automotive Manufacturers Association (PAMA

(PAMA)) was formed in 1984.
Initially three motorcycle OEMs namely Atlas Honda, Dawood Yamaha and Suzuki
Motorcycles Pakistan became PAMA members. The other founding members of PAMA
were OEMs manufacturing Passenger Cars, Tractors and Light Commercial Vehicles
(LCV’s),
LCV’s), Truck & Bus manufacturers etc. In the 1990’s, three more OEMs joined PAMA,
these were, Fateh Motors, Pakistan Cycle Industrial Cooperative Society Limited and
Siagol Qingqi Motors Ltd (subsequently renamed Qingqi Motors Ltd.).

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.

Page 16 of 83
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.

Page 17 of 83
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.

Page 19 of 83
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.

Page 20 of 83
 2.5 ORIGINAL EQUIPMENT MANUFACTURERS AND
STAKEHOLDERS

Currently there are 43 Original Equipment Manufacturers (OEMs) operating in

Pakistan’s motorcycle industry. These include 6 OEMS who are members of PAMA
including the 3 Japanese OEMs and 37 OEMs who are non PAMA members. The total
installed
ed capacity of the OEMs is approximately 1.310 million units per year as per the
Engineering Development Board (EDB). The OEMs are located in and around the
cities of Karachi (Karachi, Hyderabad & Hub) and Lahore (Lahore, Gujrat and
Gujranwala).

Market shares of the major OEMs are shown in following Table.

Page 21 of 83
 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.

Page 23 of 83
 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:

Page 24 of 83
 2.8 REGIONAL COMPETITORS ANALYSIS

CHINA

As already stated above, China is the largest exporter of motorcycles.

Some of the advantages which the Chinese industry enjoys are:

Strong domestic demand of more than 10.0 million units

Huge investment by Japanese OEMs

Low cost of infrastructure – land, utilities are all state subsidized

Government support to export industries in general

Encouragement to component manufacturers who supply to the OEMs

Market presence in 200 Countries Worldwide

Availability of most raw material locally

China’s indicators are more favorable than all its competitors

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

Page 25 of 83
THAILAND

The Thai industry is being driven by “Detroit of Asia” Vision.

3rd largest auto industry and motorcycle producer (3 million units in

2005)

Aiming to become regional assembly hub, strong infrastructure
support program provided by the government including auto clusters,
training, component development etc.

Preferential exports to ASEAN countries

Japanese brands dominate

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:

Short term strategy aimed at clearing stocks, dumping at below costs

in certain instances

Exporting to ASEAN due to pref
preferential treatment

Some penetration of the African market

Presence of Japanese OEMs and low costs coupled with strong
domestic demand of 1.9 million can help make it a major player

Page 26 of 83
 2.9 MOTORCYCLE PRODUCTION POTENTIAL IN PAKISTAN

As stated before the total production of motorcycles is likely to reach 1.7

million units by 2010 – 11. Out of this, the local OEMs should aim to export
100,000 units to Bangladesh, Sri Lanka, Afghanistan, the six Central Asian
Republics and selected East African co countries
untries like Eritrea, Somalia,
Ethiopia, Djibouti, Kenya, Uganda, etc.

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

Atlas Honda has helped upgrade capabilities of its component

manufacturers to international standards

Achieved 93.0% localization which gives them a cost advantage

Worked actively with their supply chain to reduce costs of the
components

As arranged over 20 technical collaborations for its vendors in
Pakistan with the Japanese manufacturers Forcefully presenting their
case at all forums

DAWOOD YAMAHA

Dawood Yamaha is manufacturing the 100 CC Yamaha motorcycles, it has

taken the following steps to increase production and start exports:

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
Page 27 of 83
 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

The Suzuki Motorcycles Pakistan Limited is 84% owned by Suzuki

Japan. It is currently producing only 20,000 units of 100, 110, 125 &
150CC capacity.

The installed capacity of the plant is over 100,000 units which the
management is planning to utilize in the next five years.

Suzuki is currently concentrating on the domestic market
where it is investing in developing it dealer network.

Also the company is investing to develop its vendors

The Company at the moment has no rights for exports,
however on country to country basis permission maybe
obtained.

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.

ke electricity, gas etc., are expensive and their supply is erratic

Problem #1: Utilities like
(100.0%).
Solution: Move component suppliers into Motorcycle Parks or clusters and provide
them electricity through gas powered generation plants.

Problem # 2: Land is expensive (95.0%)

Solution: Move component manufacturers into Motorcycle Parks or clusters and
provide them land at affordable prices.

Problem # 3: Non availability of skilled workers (64.0%)

Solution: Upgrade vocational skill centres and setup training facilities in the Motorcycle
Parks or vendor clusters.

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.

Problem # 7: Engineering Development Board is not monitoring and upgrading the

localized parts list. This list has not been updated since 2004 (59.0%).
Solution: PAAPAM should get the list updated on a quarterly basis by working closely
with EDB.

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)

Page 31 of 83
 Human

Resource

Department

Page 32 of 83
 FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

1. Recruiting & Selection

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.

2. Training & Development

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

On the basis of performance appraisal employees are compensated according to their

performance. High performing employees get encouragement certificates and cash
rewards.
All above functions are performed by H.R specialist team at Honda both collectively and
individually. Now I will explain who performs what in Honda H.R department
department.

Page 33 of 83
3. RECRUITMENT & SELECTION PROCESS

Requisition Induction Data

Slip Plan Entry

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.

Separate induction program is prepared for new employees:

1. Up to grade 11
2. From grade 12 and above

Page 35 of 83
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:

The incumbent’s job will be mostly clerical/repetitive nature so mostly concern

with his job. Following will be the program for this level of employees.

1- Group Video and brochu

brochure.
2- Organization charts of company and group.
3- HR systems (MBO performance appraisal etc)
4- Staff rules and his grade related entitlement.
5- All necessary info regarding timings, uniform, canteen and transport etc.
6- Introduction to his mana
manager,
ger, peers and colleagues.
7- Visit of all the departments for 3 hours each in which specifically the
related employees will brief about his respective departments in routine
business.
8- Job description of the incumbent. Dept. Mgr

9- Departmental objective and his expected specific role. Dept. Mgr

Page 36 of 83
Duration of Induction

HR 1 Day
Other departments 5 Days
His own department (depends on size and location) 1 ~ 7 Days

Total duration 7 ~ 14 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.

The presentation should cover cultural, discipline and technical issues.

Program – 2

For grade 12 and above:

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.

1. Group video and brochure

2. Organization charts of company and group

3. Systems (MBO, performance appraisal etc)

4. Staff rules and his grade related entitlement.

Page 37 of 83
 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.

7. Job description of the incumbent.

8. Departmental objective and his expected specific role.

9. Visit to other group companies located in same area

Specifically he should meet his peers in group companies to department understand

the nature of interaction which will take place between them manager in routine
business will arrange.

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.

Page 38 of 83
 4. TRAINING & DEVELOPMENT

AHL is determined to take employee training and development as a continuous process

that eventually will result in performing the employees best at the jobs entrusted to them.

4.1 Training Objectives

The broad objectives of the training should be to:

• Match the training with specific job assignments.

• Enable the successful trainees to acquire and apply the training lessons in their
work;
• Specify the criteria for acceptable performance;
• Elicit
cit target behavior (acceptable performance) from the trainees.
• Promote continuous employee performance improvement.
• Encourage career-long
long learning.
• Provide an environment that fosters learning and encourages employee
participation.
• Provide learning exp
experiences
eriences that facilitate the improvement of employee
reasoning, confidence, judgment, and self
self-esteem.
• Cultivate a work culture that provides a balance between organizational goals
and personal development.

4.2 Employee Training and Development Strategies

In an effort to serve employees better and to develop them for the upcoming roles at
AHL, we work to:

Page 39 of 83
 • 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

To assist managers and supervisors to:

• Participate in performance management processes that are collaborative with

your employees, and result in "no surprises" for either of you.
• Develop and manage a performance management process that includes annual
performance planning, employee development
development, on-going
going feedback and
performance evaluation.
• Set clear employee performance goals that align with AHL vision, mission and
goals.
• Provide on-going
going performance feedback with adequate documentation
throughout the performance management cycle.

Understand and deal effectively with performance management related special

circumstances, as they occur.

4.3 Training Policy

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

Training is a line responsibility. Each manager is fully responsible for providing

adequate development opportunity to promote maximum growth in each of his

Page 40 of 83
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;

• Systematically determining training needs for each subordinate.

• Setting his training objectives and plans to achieve them
• Monitoring the implementation of these plans
• Evaluating the effects and usefulness of the training being given with a view to, if
necessary modify the training plans.
• Motivating subordinates to improve performance and to make full use to training.
• Following
ing above, each CEO is responsible for effective training in his unit.

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

This policy shall be implemented by the following four main activities.

1. Each Manager shall review the development needs of his subordinates

constantly but more specifically at the time of annual appraisals when the
development plans of a subordinate should be agreed with him. The CEO
concerned shall be actively involved in the process. The Line Manager shall
motivate his subordinates to make full use of the training being provided.
2. Each Manager shall constantly monitor the effectiveness of training being
given and shall provide feedback to Corporate HR Department.
Page 41 of 83
3. If at any stage the Line Manager wishes to change the training plan he may do
so after agreement with his CEO and if necessary advice from Corporate HR
Department.
4. Once a year all CEOs shall individually, formally review all aspects of
development activity in their units.

Page 42 of 83
 4.4 TRAINING PROCESS

Report by
Performance Gap Training Need
Immediate
Identified Assessme
Assessment
Supervisor

Cost Benefit Training Institute

GM's Approval
Analysis Selection

Analysis of Pre
Post Training
Training Report and Post Training
Performance
Performance

Page 43 of 83
 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.

Page 44 of 83
 HUMAN
UMAN RESOURCE HIERARCHY AT AHL

G.M Human
Resource /
Administration

N.M Human
Resource

Manager
Human
Resource

Executive Executive Executive

Human Human Human
Resource Resource Resource

Page 45 of 83
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

She monitors all recruiting activities like:

i) Budget for recruitment

ii) Ad preparation
iii) Selection of Medium

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.

4. H.R Information System

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.

Page 46 of 83
 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.

Page 47 of 83
Mr. Omer Akram
Executive Human Resource:

Responsibilities:

1. Insurance

Employees at AHL are insured in three dimensions:

i) Life Insurance
ii) Health Insurance
iii) Accidental Insurance

Insurance are covered by two different insurance companies

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.

3. Training Need Assessment:

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.

Page 48 of 83
 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.

Page 49 of 83
Mr. Syed Zeeshan Haider
Executive Human Resource

Responsibilities:

1. Data retrieval from all six attendance machines installed at plant

2. Updating Daily Automated Attendance
3. Generating attendance report of previous day (3 shifts) and presented to
General Manager Human Resource, Administration & IR
4. Twice a month an *“Inconvenience Allowance Report” is generated which
is to be submitted to the finance department.
5. Salary Processing

*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.

SOPs & RATIONAL FOLLOWED BY M

Mr.
r. ZEESHAN HAIDER

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.

Page 50 of 83
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.

2. Purchase of Motorcycles by Employees

This purchase is made in two different categories:

i) Installment
ii) Policy

Under installment agreement only motorcycles are given to the employees on

installment basis while
ile under Policy both cars and motorcycles are given to the
employees. But there is a certain criterion for the employees who can get the car on
installment. Grades determine the level on which an employee is eligible to have a car.

SOPs & RATIONAL FOLLOW

FOLLOWED BY Mr.
r. ABDUL HAQ
He deals in vehicle insurance and purchase of vehicles. Like Mr. Omar Akram he also
stays in contact with insurance company to make sure each and every vehicle of
employees is insured.

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.

1. Grade of the employee

2. Signed Agreement
3. Approval Letter from GM

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”?

I came up with the following points regarding the above statement:

Current Policy 1:

As per Insurance Clause: Insurance Company is not liable if the insured person is
dead in any terrorism act.

My Suggestion: There should be flexibility in the terrorism clause. At present terrorism

is claiming most of the lives so what will be the use of a life policy if you are not covered
against a very common and unfortunate cause of death.
Insurance Company should pay at least 50% of insured amount. State, Companies and
insurance companies should compensate the family of dead against any ki
kind of act of
terrorism. Though it’s not a binding by the law but still it’s an ethical duty of concerning
institutions.

Current Policy 2:

As per Insurance Clause: Insurance Company will not cover the parents of employees
but their wife or children.

My Suggestion: Insurance Company should cover the parents of non

non-married
employees till they are married.

Page 52 of 83
Current Policy 3:

As per Insurance Clause: Under Health Insurance there will be no coverage for the
treatment of Hepatitis.

My suggestion: Hepatitis is a dangerous disease and suffering due to this is quite

usual these days. Moreover its treatment is not quite affordable that why it should be
covered to some extent to facilitate the insured employees.

Page 53 of 83
 ADMINSTRATION & INDUSTRI
INDUSTRIAL
AL RELATIONS (I.R)
HIERARCHY AT AHL

G.M Human
Resource /
Administration

Manager
Administration

A.M
Administration

Executive Executive Executive

Administration Administration Administration

Page 54 of 83
ADMINSTRATION & INDUSTRIAL
NDUSTRIAL RELATIONS (I.R) DEPARTMENT
D at
AHL:

This department runs with the co

co-ordination
ordination of Human Resource Department, both
departments occupy the same office. It performs the following functions like:

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

At AHL there are two kinds of visits:

i) Japanese & Higher Management Visits

ii) Study 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

When you enter AHL Sheikhupura plant it is almo

almost
st impossible to recognize some
someone
by his grade or rank due to uniform. Concept of equality prevails over AHL with all the
employees dressed in white uniform. This equality is a symbol of AHL and it surely
boosts the culture at AHL.

Page 56 of 83
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.

SOPs & RATIONAL FOLLOWED BY M

Mr.
r. RIZWAN RASOOL
A monthly canteen budget is given to the Admin. & I.R Department by Finance
Department and menu is strictly decided considering that budget limit.
Monthly menu is decided by four member committee on 24th or 25th each month. This
committee includes:

i) Executive Admin. & I.R

ii) Executive Admin. & I.R (Union)
iii) Production Personal
iv) Cost Personal (Finance Department)

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

Page 57 of 83
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.

Page 58 of 83
Miss Humaira
Executive Administration & I.R

Responsibilities:

1. Traveling Related Services

2. Apprenticeship Recruitment & Selection

SOPs & RATIONAL FOLLOWED BY MISS

ISS HUMAIRA

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:

1st Year 50% of Basic Salary o

of Permanent Employees

Page 59 of 83
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;

i) Copy For Company

ii) Copy For Candidate
iii) Copy For *Apprenticeship
renticeship Directorate

*It is the apprenticeship governing body of the government

Page 60 of 83
Mr. Shahzad Sarwar
Executive Administration & I.R

Responsibilities:

1. Industrial Relations
2. Union
3. Job Contract

SOPs & RATIONAL FOLLOWED BY M

Mr.
r. SHAHZAD SARWAR

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.

Following are the AHL legal consultants;

Naeem Bukhari, Islamabad (Supreme Court Matters)

Bukhari Aziz & Kareem, Lahore

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.

If an employee takes a plea in court against the company then comp

company has to justify its
decision over that matter. They can not straight away terminate some one but they have
to show the procedure they have followed in doing so. At internship I just came across a

Page 61 of 83
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:

Union is made to protect the employee right and it falls u

under
nder the Industrial Relations
Act 2008. Union leader negotiates on the behalf of employees.
Union leader is elected by the elections and union is supposed to be in the power for
the period of two years.

Security & Safety:

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.

Page 62 of 83
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.

Total Number of Guards = 38

Guards Patrolling at Plant = 26
Guards Patrolling at DCC Store = 12
Guards at Plant are divided in 3 shifts (8 hours each) as:
Shift A: 7 Guards
Shift B: 9 Guards
Shift C: 10 Guards

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.

Page 63 of 83
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:

Define all Terminologies

Chemistry of Fire (i.e. Oxygen, Fuel
Fuel, Heat)
How It Expands?
Prevention Methods

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.

Page 64 of 83
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;

i) A particular driver can not drive more than a shift

ii) Driver can not go above 80 km/h
iii) In case of rainy weather it’s not necessary for the driver to abide by the time.
Late arrival will be no issue since the weath
weather
er was dangerous.
iv) At morning pick up driver can not leave some one before the committed time
and he would not wait even a minute after that time.
v) Monthly check up is ensured to keep the vans in good condition.
vi) Smoking, eating and using abusive language is strictly prohibited in the vans.

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.

Page 65 of 83
 5. INSTITUTIONAL SALES

Mr. Zaheer Minhas

National Manager Institutional Sales

This includes four types of sales:

1. CSD (canteen sales department)

2. Government Institutions
3. Private Businesses
4. Exports

5.1 SALES & SPARE PARTS HIERARCHY

Vice President
Marketing

National Manager National Manager National Manager National Manager

PARTS SALES Dealers Dev. Institutional Sales.

Regional Regional Regional Regional

Manager Manager Manager Manager
Karachi Multan Lahore Rawalpi
Region Region Region ndi
Region

Page 66 of 83
 5.2 INSTITUTIONAL SALES PROCESS

Personal Purchase
Inquiry Quotation Order

Delivery Booking Pay Order

5.3 SOPs & RATIONAL FOLLOWED IN INSTITUTIONAL

STITUTIONAL
SALES

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.

Page 67 of 83
 6. SPARE PARTS

Mr. Hassan Cheema

Regional Manager Parts

Responsibilities:
Meeting the demand of the spare parts in the market and to make new dealers by
exploring new markets.

Functions of Spare Parts Department:

Sales department works with dealers who are at the same time working as the
distributor and the retailer also.
Dealers from respective areas send their orders in quantity that contain delivery period
with advance payment with marketing department.
Payment is sent to accounts department or dealer’s respective accounts. When
payment becomes clear then demand is sent to marketing department to ensure
delivery to dealers.
If dealer has sent some extra amount then it is separately shown as a pending payment
in his account. This is adjusted after next delivery.

Spare Parts Sources:

AHL gets these spare parts from three sources:
1. In House
2. Vendors
3. Import

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.

Page 68 of 83
 6.1 SOPs & RATIONAL FOLLOWED IN SPARE PARTS

5s DEALERS:

AHL’s dealers deal in five categories:

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.

Developing “HUMS” Dealers (Honda Used Motorcycles Sales):

Page 69 of 83
CONCEPT

A lot of customers want to purchase new motorcycle, in exchange of old

Motorcycle and they want to pay balance payment in terms of Cash or Installments.
These kinds of customers mostly go to used motorcycle market for exchange purpose.
We want to create ‘Best 2nd hand Sellers’ as our representatives of 5
5-s Dealers in the
2nd hand market, who bring these kinds of Customers to 5-ss Dealers and provide new
motorcycle on mutual understanding.
The HUMS will get the commission from the 5
5-ss Dealers and also from
Customers and further get the profit after selling of old motorcycle.

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

Page 70 of 83
 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:

WHY, WHERE, WHEN, WHO

WHY?
There can be countless reason ns to this Why but at most of the time it’s about
capturing the market. Success comes when we keep a track of our competitor so any
move from competitor can also bring an answer to this Why.
WHERE?
This will include some research work because we have to inspect and analyze the data
of potential markets we are intended to intrude.
A survey of market potential, competitor analysis and the need of customer will help us
in a big way.
It will also include the location of our dealership as demographics plays an important
part in sales activities.
WHEN?
There is always a specific perfect time of doing something or most commonly we say
there is a right time for right thing. This aspect spreads from our social live
lives to the
business activities. In the case of dealership our dealer is most concerned about it but
at the end of day we are worried since the dealer carries our name.

WHO?
Now the dealer comes into the equation, we have to find what kind of potential deale
dealer
should have to be our part.

His past experience business wise?

What is his personality attributes?
What is his background?
What is his potential in the market?

Page 71 of 83
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:

1. Account Running Finance

Mark up will be charged on the money used

2. Limit to Loan 1 million to 50 million

Amount can be 30% of last year’s sale

3. Purpose of Loan To buy the motorcycles or stock from AHL

4. Security a. Stock through hypothecation

b. Mortgage
c. Personal Guarantee

5. Mark Up Rate 14%

6. Payment Payment on quarterly basis

7. Basis Qualification a. Dealing relationship with company should be more

than 5 years
b. No bank default history
c. Value of Mortgage Property should be 25% more
than the loan amount
d. Firm or Company’s Accounts

Page 72 of 83
 7. SERVICES

7.1 SERVICES HIERARCHY

ational manager Service

Regional Manager Regional Manager Regional Manager Regional Manager

Lahore Rawalpindi Multan Karachi.

4 Territory Inch. 4 Territory Inch. 4 Territory Inch.. 4 Territory Inch.

7.2 CUSTOMER CARE CENTRE

A proactive approach to enhance customer satisfaction and add value to AHL brand

How will the centre work

work?

• 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

Page 73 of 83
 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.

Page 74 of 83
Page 75 of 83
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:

Japanese technology is considered a bench mark in relation to quality.

So this
his Japanese quality fame is still attracting customers. At the
introduction stage of Chinese Motorcycles customers were interested
in low price but with the passage of time they realized the quality
difference. That’s why there is so much opportunity for a quality
conscious companies like Atlas Honda Limited.

Only company producing 4 stroke 100 CC bike. CD 100 has good
economy as compared to the competitors.

Threats:

Political instability, Govt. Taxes and Chinese companies are a threat

but these are usua
usual threats for any business.

Page 76 of 83
 RECOMMENDATIONS & CONCLUSION

1. Glasses always appear suspicious with regard to cleanliness.

2. Canteen should be paints in more cheerful colors.
3. Intrusion from outside can be best stopped by electric fences.
4. Too many contractors are like too many cooks spoil the broth.
5. Personally I fear CNG cylinders in company like ICI they avoid using CNG
cylinders in their vans.
6. Instead of so many vans and routes we can have coasters or other buses. It will
give two benefits: spacious, AC will not be required.
7. If we just stick with these vans then we should make them stand under a shed or
its becoming like a “journey to the hell” instead of home.
8. Vans are overcrowded which makes this long journey to home very
uncomfortable.
9. Smoking should not be allowed in canteen area or other premises. There should
be a specific smoking place, room or area for smokers.
10. There should be more variety in the menus means freedom of choice.
11. Safety board and plant map is in the security office while it should be appea
appearing
near the main gate so that even the visitors can know the place well.
12. Office computers are a bit problematic and soft wares are not up date.
13. LCD’s should be there to protect the eyes. People spend most of the time on
their computers so it is necessary to protect their eyes that will also help to
lessen the stress.
14. Conservation of energy is near to nil, when it comes to turning off monitors,
everybody can use monitor auto power off option for that.

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.

Page 77 of 83
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.

17. We should ensure different suitable types of Recruitment i.e. Col

College
Recruitment
18. For this purpose need to develop
evelop Liaison with Intellectuals and Higher
Authorities i.e. directors. Head of departments etc through Exchange of E
E-Mails,
Cards, Letters, Phone calls, Visits etc
19. Have Seminars in different universities
20. Offer visits to different universities
21. Offer internships to different universities
22. Ensure our participation in different Exhibitions and Functions encompasses
industrial sector in different universities and Associations.
23. Job Advertisement on Website
24. For this purpose need to up
upgrade
grade our website with an addition of career tag on
our
ur website to Convey career path and growth at EDMF to our Applicants
25. Inform current opportunities for job, internships, apprenticeships etc
26. For online Resume submission time to time to have excellent application pool
not only at the time of Job postin
posting even before it.
27. Give detail for every advertisement of job opportunities along with detail about
job description and career path, status of advertised job opportunities along with
compensation packages to manifest potential candidates because this all detail is
not possible through newspaper advertisement and we have competitive edge of
offering excellent compensation package to Mgt. Trainees so we should get
benefit of this strength.
28. Applicant's ratio should be of (4:1) in short listing. Test, 1st interview
in and (3:1) in
final interview to have purely potential candidate by following successful
Recruitment Pyramid
29. Need to improve our newspaper advertisement format and style.

Page 78 of 83
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.

Page 79 of 83
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.

Page 80 of 83
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

Page 81 of 83
 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.

Page 82 of 83
 REFRENCES

PAMA – Pakistan Automotive Manufacturing Association (official website)

Research Paper: US Aid Agency & Ministry of Finance

Hand Book: Human Resource Department at AHL

Printed Material: Broachers & Literature at AHL

Page 83 of 83