Professional Documents
Culture Documents
Submitted By:
Khalil Ur Rahman
Internee, IR
ACKNOWLEDGEMENT
First of all I would acknowledge ALLAH ALMIGHTY whose blessings are always
there to guide me and lead me towards successes and accomplishments in
life.
Before starting my report I would like to thank the officials and management
of Packages Limited, who provided me a wonderful opportunity of learning in
such a big organization. I would also acknowledge the support and guidance
that my supervisors provided me throughout my internship period.
I would like to express my sincere gratitude to, Mr. Akram (IR Manager) and
Mr. Imran Ellahi (Assistant Manager) who provided me opportunity to work in
the practical environment and their constant encouragement, sincere
advices, suggestions and valuable guidance helped me in accomplishment
of my training program. Without their guidance, I would have never been
able to gain the confidence and precision in my work. I would also like to pay
my gratitude to all the people, without whose input this report could not
have been completed. And, of course, I am most indebted to my parents;
without their support, encouragement and prayers this work would have
never been possible.
EXECUTIVE SUMMARY:
This Internship report will be describing the industry profile of Packages Ltd,
that in which industry they are in and how that industry is working. This
summary also comprises of Packages Ltd.s company profile describing all
the information of the company that what it is about what it does, where it
functions and how well it is going. The report also shows the way the
business process happen in the Packages Ltd. What are the different
departments in Packages Ltd.? And how they work with each other. The
SWOT Analysis will tell the strengths of company which get laden due to
some weakness. As we are in Pakistan there are many threats to a business,
hence Packages capitalizes on the opportunities to defeat all the threats to
make everything go their way. Hence its a comprehensive view of the
strengths overcoming the weaknesses and the threats minimized by using
the opportunities.
Last but not least, the report tells the problems that company faces. And how
can they solve them, as no business can work wonders without finding gaps
and helping themselves to attain and maintain a better position in the
industry. Hence the report mentions many tiny problems which need
attention in order to further best in the industry.
Table of Contents
Chapter 1: INTRODUCTION OF PACKAGES LIMITED................................6
OVER THE YEARS..........................................................................................7
CORPORATE STRUCTURE..............................................................................9
ORGANOGRAM............................................................................................10
VISION............................................................................................................11
MISSION STATEMENT......................................................................................12
CORE VALUES.................................................................................................13
BOARD OF DIRECTORS & MANAGEMENT COMMITTEES.................................14
BUSINESS ALLIANCES....................................................................................16
CORPORATE CULTURE....................................................................................17
PRODUCTS OF PACKAGES LIMITED................................................................18
BUSINESS UNIT - FOLDING CARTONS (FC)..................................................18
BUSINESS UNIT - CONSUMER PRODUCTS...................................................19
MECHANICAL FABRICATION & ROLL COVERS..............................................21
FLEXIBLE BUSINESS UNIT:...........................................................................23
DEPARTMENTS / DIVISIONS............................................................................24
Chapter 2: MANAGEMENT PRACTICES AT PACKAGES...........................26
INTRODUCTION OF IR AND HR:...................................................................26
HUMAN RESOURCE DEPARTMENT..................................................................26
FUNCTIONS OF HRD DEPARTMENTS............................................................27
3
Established in 1956 as a joint venture between the Ali Group of Pakistan and
Akerlund and Rausing of Sweden, Packages Limited provides premium
packaging solutions for exceptional value to individuals and businesses in
the most efficient, profitable and sustainable way. Packages offers a
complete range of packaging solutions and employees over 1500 people.
Listed on all three stock exchanges in Pakistan, Packages Limited
maintained a long-time credit rating of AA and has always been at
forefront of new developments in packaging research. Packages limited
pioneered several innovations, including the use of wheat straw as a
material for paper and board manufacture.
has
the
has
raw
Over the years, Packages has continued to enhance its facilities to meet the
growing
demand
of
packaging
products.
In 1968, with IFC participation, Packages integrated upstream by
establishing a Pulp and Paper Mill with a capacity of 24,000 tons per year
based on waste paper and agricultural by-products i.e. wheat straw and river
grass.
In 1981, Packages modified a paper machine to produce tissue paper in
response to growing awareness and demand for hygienic and disposable
tissues.
In 1986, the Company established a flexible packaging unit to cater to the
increasing demand from consumers for sophisticated packaging used
primarily in the food industry.
In 1993, a joint venture agreement, Tri-Pack Films Limited, was signed with
Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at
the Industrial Estate in Hatter, KPK. Packages Limited owns 33% of Tri-Pack
Films Limited equity.
In July, 1994, Coates Lorilleux Pakistan limited (currently DIC Pakistan
Limited), in which Packages Limited has 55% ownership, commenced
production and sale of printing inks.
In 1996, Packages entered into a joint venture agreement with Print care
(Ceylon) Limited for the production of flexible packaging materials in Sri
Kasurand Karachi and involved initial equity participation by Stora Enso OYJ
Group of 35% by way of subscription of right shares with a commitment to
increase the shareholding to 50% at a later stage.
In the same year, Packages also invested in a New Rotogravure Machine for
its Flexible Packaging Business with a total estimated project cost of PKR 326
million as part of the Company's efforts to remain abreast of improved
technological developments in the Packaging business.
The Joint Venture Agreement with Stora Enso OYJ Group, signed in 2012, was
implemented in 2013 and Packages completed the transfer of assets and
related obligations of Paper & Paperboard and Corrugated business
operations to Bulleh Shah Packaging (Private) Limited along with cash equity
injection. Packages now holds 65% equity in Bulleh Shah Packaging (Private)
Limited. The joint venture partner, StoraEnso OYJ Group, is actively involved
in providing technical expertise to further enhance the Paper &Paperboard
and Corrugated business operations.
CORPORATE STRUCTURE
Packages Lanka is a joint venture between Packages Limited and the Print
Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages
Limited and Dainippon Ink and Chemicals, Inc. of Japan.
Packages Lanka is a joint venture between Packages Limited and the Print
Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages
Limited and Dainippon Ink and Chemicals, Inc. of Japan.
10
ORGANOGRAM
11
Commercial Manag
Marketing Manager
Store Manager
I.R Manager
12
13
VISION
Position ourselves to be a regional player of quality packaging and consumer
products. Improve on contemporary measures including cost, quality,
service, speed of delivery and mobilization. Keep investing in technology,
systems and human resource to effectively meet the challenges every new
dawn brings. Develop relationships with all our stakeholders based on
sustainable cooperation, upholding ethical values, which the shareholders,
management and employees represent and continuously strive for.
14
MISSION STATEMENT
to
set
even
higher
standards
for
our
products.
growth,
rewards
initiative
and
performance.
fair
returns
to
its
investors.
15
CORE VALUES
Good Governance
Work Environment
Good Governance
Our People
Conservation
Customer Satisfaction
Ethical behavior
WHISTLEBLOWING POLICY
This whistleblowing policy is intended to protect the staff if they raise
concerns such as:
incorrect financial reporting
unlawful activity;
activities that are not in line with Packages policy, including the Code
of Conduct; or.
activities which otherwise amount to serious improper conduct
16
Our people are our greatest asset. We seek and retain people who feel there
is no compromising on excellence, and a corporate culture in which our
family can grow and thrive. Heading our multi-talented team is our
leadership of experienced senior management. Together, we know how to
combine our skills and knowledge to deliver state-of-the-art solutions to our
customers.
BOARD OF DIRECTORS
Towfiq Habib Chinoy
(Non-Executive Director)
EXECUTIVE COMMITTEE
ADVISOR
COMPANY SECRETARY
Adi J. Cawasji
AUDIT COMMITTEE
Shamim
Ahmed
Khan
(Non-Executive Director)
Syed
Shahid
Ali
Member
(Non-Executive Director)
Muhammad
Aurangzeb
(Independent Director)
Towfiq
Habib
(Non-Executive Director)
Chinoy
Chairman
Tariq
Khan
Member
Iqbal
18
Rizwan
Ghani
(Executive Director)
(Non-Executive Director)
KKhurram
Raza
Shamim
Ahmad
(Chief Financial Officer)
(Non-Executive Director)
Suleman
Javed
Syed ERP)
Hyder
(Manager
(Executive Director)
Syed
Aslam
(Executive Director)
Chairman
Bakhtayari
Khan
Ali
Mehdi
Kaifee
Siddiqui(Head of Human Resource)
Member
Member
Member
Member
Member
Secretary
BUSINESS ALLIANCES
One of the best ways for a business to leverage its products and increase
growth is through association. Our business alliances help us manage our
business more effectively, as well as helping us and our partners develop
and diversify our interests. Customers also benefit from the increased
19
CORPORATE CULTURE
20
21
INDUSTRIES
23
Facial Tissue
Tissue Roll
Kitchen Roll
Rose Petal Hi-jeen Hand Towel
Rose Petal Pocket Packs
Rose Petal Party Products
Wet Tissues
24
INDUSTRIES
Agriculture
Textile
26
Paper:
Paper quality and weight is determined by the clients specific requirements
and Packages ensures this is carried out to the exact specifications provided.
Some of the paper produced by Packages Limited includes:
High gloss writing paper
Special poster paper/ machine glazed
Liner for shipping cartons
Wood-free writing/ printing paper
Board:
Packages Limited manufactures several types of boards. Food Board, a basic
raw material in liquid food packaging, is being manufactured since 1979 for
Tetra Pak Pakistan Limited. This material is used for making aseptic
packaging for milk, cream, oil, fruit juices and other perishable food items.
Some of the board products of Packages Limited include:
Liquid packing board
Food grade board
Duplex board/chipboard
27
28
DEPARTMENTS / DIVISIONS
In the company, there are various productions, service, support Divisions and
their respective sub-departments, which are as follows:
Paper & Board Division
Straw and Linter Preparation, Cooking House, Bleaching House, Chemical
House, CRP, CMTP, ETP, Waste Paper Plant, Beater House, Machine House,
Quality Control, Finishing House, Maintenance and Instrument.
Business Unit- Carton
Offset, Cutting & Creasing including Die making, Lemanic, Folding & Gluing,
Planning Cell Offset Department.
Business Unit- Prepress and Logistics
Art & Camera, Reproduction, Paper Stores, Coating, Dispatch Section,
Planning Cell- Prepress Departments
Business Unit- Flexible
29
Marketing Division
Sales Office Lahore, Karachi, Islamabad
Consumer Products
Sales Office Lahore, Karachi, Islamabad & Multan
Finance
Financial Accounts, Cost and Tax, Internal Audit, Accounts and Shares
Department Karachi
Commercial
Local Purchase Section, Imports Section and Commercial Office, Karachi
Stores & Inventory
Central Stores Packaging and Paper Board, Waste Disposal and Transport
Industrial Relations
30
Medical Unit
Packages Dispensary, 23-Gulber-III, Lahore
31
HRD Manager
HRD Manager
Asst. Manager
HR Executive
HRD
32
forms
are
available
online
at
Packages
website
SUCCESSION PLANNING
Packages is a company that offers long term career opportunities to its
employees. There is no concept of lateral entry in Packages. An individual
begins his career as a management trainee. Management trainee is trained
and groomed according to the company's requirement. As the individual
grows and shows his potential, he is considered for higher vacant post for
which he is transferred or promoted. The following are the grades of
employees in Packages:
Manager II & above
Manager
Executive I
34
Executive II
Executive III
Management Trainee
For succession planning, a panel meeting is held annually where a list of
employees for promotion is evolved. The panel comprises of:
GM
DGM
HR manager
Head of respective department
The panel holds discussions about employees of departments. The panel
discusses various issues regarding employees like strengths, weaknesses,
qualification, performance, experience, seniority, and suitability for the
position. These discussions are then recorded and reviewed periodically so
that action can be taken accordingly.
PROCEDURE
When a need for external executive recruitment arises, it is communicated
via departmental head along with the requirements to the HRD department.
The HRD department advertises in newspapers and collects CVs of interested
persons from mail and internet. The eligible applicants are listed according to
their merit, which is calculated through a formula. The number of applicants
to be called for the written test varies according to the number of vacant
posts and is strictly on merit (at least the HR Manager says so). Candidates
are invited for written tests via mail through courier or e-mail at least five to
ten days prior to the test. The HRD department decides the date and venue
of test. The candidates are provided with the information about the pattern
of test, which carries 100 marks. The test consists of the following parts:
Qualitative skills
Quantitative skills
35
Writing skills
Technical knowledge
IQ
The successful candidates are informed via mail, e-mail (and telephone call,
if urgent) about the interview. However, the candidates who fail the written
test once are not given a second chance for the same vacancy.
The first interview is called "preliminary interview" which is conducted by a
panel of managers to access the potential of candidates. It takes
approximately 15 minutes for the panel to interview a candidate. The panel
consists of 4-6 people. HRD department is responsible for constituting the
panel,
which comprises
of HRD
manager and a
team of
relevant
departmental heads.
The final interview is a goal-oriented conversation in which the most
promising candidates appear. In the second interview, GM makes the final
selection and his decision is considered to be final. During the interview the
HRD head accompanies GM. The last step is the candidate's medical
examination, which is conducted by Packages clinic Gulberg. Those
candidates who pass the medical test are sent an appointment letter at least
one week before the joining date whereas the unsuccessful candidates are
sent regret letters.
ORIENTATION
Packages Ltd. has a well-planned orientation program. In order to acquaint
the
newcomer
with
the
organizational
culture,
functions
of
various
departments and their locations, the newly recruited employee attends a 4-6
weeks orientation program designed by HRD department.
36
RECRUITED INDIVIDUAL
WRITTEN TEST
R
E
J
C
T
E
D
PRELIMINARY INTERVIEW
FINAL INTERVIEW
Informing successful
candidates about final
interview
Conducting final interview
A
P
P
L
I
C
A
MEDICAL TEST
EMPLOYEED
INDIVIDUAL
N
T
S
ORIENTATION
37
PERFORMANCE APPRAISAL
Performance appraisal is a periodic review or evaluation of an individual job
performance. It is always a continuous process. In Packages Ltd.
Performance appraisal is conducted annually
The employees in connection with their respective managers set their
objectives at the beginning of the year (MBO), and they are evaluated
against these objectives at the end of the year.
The new management trainees are evaluated quarterly by their
immediate supervisor
The employees are evaluated sixty percent against the set objectives
and forty percent against different attributes like personal behavior,
leadership
qualities,
and
decision-making,
vision
and
innovation/initiative competencies.
Performance appraisal is used here for succession planning, selection,
HR development, career planning and development, assessment of
employee potential.
Performance appraisal is used to evaluate
behaviors
task outcomes
improvement potential
training needs evaluation
38
Establishing
job
expectations
Examining
work
performance
Appraise
performanc
e
Discuss
appraisal with
employees
Give training
for
deficiencies
39
41
Your job is an important part of your life, and to do it well, you need an
appropriate environment for your mind as well as your body. We like to make
sure that you do: our corporate culture emphasizes people, and the need to
satisfy their potential.
The attractiveness of any company's corporate environment can be gauged
by the employees it hires and retains. An impressive 42% of our employees
have been with us for more than 10 years, and almost 26% for more than 20.
This is just one of the reasons why you would consider Packages as a
prospective employer.
Another is the technical excellence of our employees. 33% of our employees
working as technical personnel have a bachelors or advanced degree. We
take pride in the diversity of our staff, with chartered accountants, MBAs,
engineers and even qualified lawyers on board.
For us, the resources running Packages are not the machines, but the people.
We do not seek employees. We seek people who will think, feel, express
themselves, learn, teach, and grow with us. Their growth is the company's
growth. That's how personal it is, for us. We have designed an impressive
range of facilities and services to free our people from worries and allow
them personal and professional freedom. These are just a few of the benefits
we provide for employee welfare:
Bonus - A cash bonus is paid annually to all employees.
Conveyance Allowance - This is also paid to all employees.
Employees are also offered the option of buying vehicles at reduced
prices.
House Rent Allowance - This is paid to all employees as a hefty
percentage of their basic salaries.
42
QUALITY FOCUS
Manufacturing top quality products has always been our top priority. To
achieve this, we have implemented sound engineering policies which we are
constantly improving. Today, our idea of processes includes not only
manufacturing policies but also business and management processes.
43
44
QUALITY POLICY
Packages Ltd. is strongly committed to produce quality products that
conform to customer's requirements at a competitive price.
We shall continually improve our Quality Management System and
quality performance of all business processes.
We shall set quality objectives at all levels and allocate appropriate
resources to achieve them.
We shall ensure all our employees are well aware of company's Quality
Policy and are motivated to apply it in their areas of responsibility.
Hierarchy of IR Department
INDUSTRIAL
RELATIONSHIP
LAW
ESTABLISH
COMPENSATIO
INCENTIVE
TIME
MANAGEME
WELFARE
SALARY
WAGES
WEEK 1
Establishment Wing:
Mr. Abdul Gaffar ( Assistant Personnel Officer Establishment)
46
47
WEEK 2
Incentive Wing:
Mr. Tariq Saeed (Personnel Officer)
Mr. Shafqat Ali (Establishment Assistant)
48
WEEK 3
Salaries and Wages Wing:
Muhammad Raiz Adil {Personnel Officer Establishment, Bulleh Shah
Packages (Monthly Staff)}
Younas Mehmood {Personnel Officer Establishment, Packages Ltd
Lahore (Monthly Staff)}
Athar Hussain {Establishment Assistant, Packages Ltd Lahore (Hourly
Staff)}
By using the system the performance of the labor force is easily evaluated.
As the pay of an employee is directly proportional to the time worked, it
enhances the motivational level of employees. It is the largest wing of the
department and is performing important functions. It keeps the records of
the employees, calculates the wages and salaries, for employees. The record
keeping is very scientifically organized. There are two types of employees in
Packages.
Employees working on hourly are X1 and on salary are X2, X3, and X4.
X1
A, B, C, D (WORKERS)
P, P2, P3
X2
1 To 5 (WORKERS)
JE, JE1 (EXECTUIVES)
E, E1,E2,E3
X3
M
M1
M2
X4
M3
M4
GM, MD
TECHNICAL
TE, TE.1,TE.2,TE.3,TE.4,TE.5,
TE.6,TE.7,
PROCESS SPECIALIST
S1, S2, S3
Temporary Workers:
Workers on hourly basis get their wages through a card that contains the
starting time of work and ending time. The work is noted through punching
49
machine. The total working hours of employees are calculated and payments
are made to them.
Monthly Staff:
A gate pass is issued to the employees if they go out of the factory for any
personal/official work. They submit the gate pass to gate office; than a gate
pass is sent to the time office so over there data is enter into the system. A
gate passes are set into three classes i.e. are short leaves, officials and
overtime. If the gate pass time exceeds 8 hours, a leave is deducted from
the employee record of that employee who is paid on monthly bases. On
daily basis gate passes are checked and enter in system.
Employees are given different types of leaves which have different codes, so
a code helps when the data is transferred to the system. Daily the data is
enter into the system, the section is using the SAP and Time Wizard
softwares. The following are the leaves which company is offering to their
employees.
Leaves
Annual leave
Casual leave
Medical leave
Special leave
Rest
Tour
Leave w/o pay
Social security leave
Absence
Medical leave full
Medical leave half
Special leave 25% Gross
Special leave 50% Gross
Special leave 100% Gross
Compensatory leave
Code
0100
0200
0300
0400
0500
0600
0700
0800
0900
1000
1001
2000
2001
2002
5000
When all three leaves (annual, casual and medical) of the employee will be
nil, if he want medical leave then he will be given the special leave 25%,
50% or 100%. If the employee who is on contract does not inform about his
50
leaves then he will be consider absent and his salary would be stopped. All
types of leaves are checked before running the salary of employee.
Final Settlement:
It is also prepared by this section. When employee is retired from the job he
is paid the salary of next three months. All the allowance are also paid like
house rent, conveyance and many more except the telephone allowances.
The total numbers of annual leaves left are also paid to the employee by
calculating through this formula i.e.
WEEK 4
TIME OFFICE WING:
It is the largest wing of IR department and performs most of the HR
activities. It keeps the record of employees; calculate wages and salaries and
marks the attendance of the employees. The system of record keeping is
electronically organized in data management system (SAP).
There are two types of employees in Packages:
1 Employees working on monthly basis
a Permanent
b contractual
2 Employees working on hourly basis
a Temporary (for 85 days)
b Shift workers
Hourly workers get their wages through a card system, which contains the
information of all shift timings of entry and exit, overtime and fortnight
attendance. This information is noted through punching machine and
manually done and verified by immediate supervisor or shift in charge. Thus
51
total working hours are determined and wages are paid according to card
information inscribed on it.
Gate passes:
A gate pass is issued to the employees if they go out of the factory during
working hours for any personal / official work. This gate pass is duly signed
by the concerned supervisory authority and is shown to the gate office
before leaving the premises. These gate passes are then sent to the time
office on next day where personnel officers check them in their Time Wizard
attendance system.
This system gives workers flexible hour of duty and their performance
improves. Moreover, the accuracy in payment is ensured because the pay of
employee is directly proportional to the time worked.
Incentive for Production Workers:
Moreover, there is a sub-section of payroll process i.e. incentive allocation
section. Incentive that is paid to the production workers based on production
volume. If exceeds from the given target, incentive is added to the account
with a specific percentage and distributed among workers of that shift. A
production card is used to enter the information about shift timing, machine
number, and department, number of workers with their personnel number,
target production and actual production. They are then sorted out shift and
machine wise and a batch production card is put on a single batch
production. The data is entered to the system and which is automatically
added to the account of workers.
Leave Processing:
The leave submission or grant of leaves is done through a leave application
form, which is signed by the immediate supervisory authority and sent to the
time office. The personnel officers enter the leave to the system of personnel
52
management. Thus the leaves deduction is also done when salary process is
executed. All these activities are performed by junior personnel officers of
payroll section X1 and X2.
Leave entitlement:
Annual leave (14 for workers up to J.E (with pay), 16 for Executive and
managerial staff) can be availed for more than 3 days at a stretch only
after confirmation.
Casual leave (10 with pay) can be availed for more than 3 days at a
stretch only after confirmation.
Medical leave(8 with full pay, 16 with half pay)
Hajj leave(30 days)
Compensatory leave(1 for working on rest day, 2 on doing work on Eid
and other Festivals( @ double the rate of hourly wage)
Maternity Leave(45 days preconifinement, 45 days post confinement )
WEEK 5
LEGAL CELL:
Legal wing is responsible for the legal issues and labor union policies. It also
strives to resolve and arrange the conflicts between management and union,
management and government institutional bodies legal requirements. This
section conducts all the legal and disciplinary actions.
The legal wing is mainly concerned with the following activities.
Individual Grievances handling
Handling Misconduct
Negotiations with Union
Contracting Legal Advisor for Company cases.
53
54
WEEK 6
LABOR WELFARE:
This wing is very much active in maintaining relationship of employees and
management and to do and initiate a lot of activities for the welfare of
workers and employees. It supervises the following areas.
1 EOBI/ESSI related issues
2 Fair price shop
3 Training and development & Apprenticeship
EOBI:
Welfare office deals with and follows the Employees Old Age Benefits
Institution Act 1976. Following are the benefits that are being offered to the
employees in Packages in accordance with the Act.
Employees Old-Age Pension Scheme:
All the employees shall become members of Employees Old-Age Pension
Scheme that is set up by the Government and shall be entitled to pension
after attaining the age of 58. The company contributes 5% of an employees
minimum wages/salary (6000 Rs.), 1% from the employees toward this
scheme.
Formula for calculating the Pension is as follows:
Pension =
year
50
Invalidity Pension:
An insured person who suffers invalidity shall be entitled to get invalidity
pension at prescribed rates.
55
years
B.A/B.Sc.
B.Sc. (Hons.) /BCS
years
Three years diploma courses 6 scholarships Rs. 500.00 p.m. for 3 years
56
Graduate engineering
years
Post- graduation
Special children
Apprenticeship:
In Packages 2% of the total employees has to work as apprentice. To
maintain a minimum level of performance in the organization. This purpose
of this is to develop skills in workers. This is usually offered to the workers
offsprings. This is for a period of 3 years.
First year:
Second year:
Second year:
Service Award:
On the completion of 20 years (5000 Rs), 25 (10,000 Rs) and 30 (12
months gross salaries) years service, Company gives the mention gifts and
the Certificates as a token of its appreciation of continued association and
loyalty of employee with management.
Canteen and Mess:
In order to ensure wholesome and quality food, the management is operating
Canteen round the clock. Not only lunch/dinner but also light snacks for the
third shift are served. The food is served at subsidized rates and employees
have to pay a very nominal price. There are four types of mess and charges
against them are:
Workers mess
Junior mess
Senior mess
Executives mess
0.65 paisa
1/- per meal
2/- per meal
132/- per month deduction.
Uniforms:
All workers except those working in office are given uniforms along with foot
wears.
Rest house:
Packages always care for their employees and they provide them opportunity
to enjoy their holidays. By providing they rest house in Muree. Every year
information is circulated to all the departments to submit the details of the
employees who want to avail the rest house during the summer season.
Balloting is done and date and duration of the stay is informed to the lucky
winners. Stay is for 4 days and nothing is charged from the employees. This
facility is for the J.E, Executive and the Managerial staff.
The rest houses are:
Rest house for Managerial staff: Senior Rest House Muree 49 Hall Road.
Rest House for executives: Kuldana Rest House Muree.
Rest House for J.E: Junior Rest House Muree 48 Bank road Muree.
STRENGTHS:
Skilled workforce:
Packages enjoys an educated and skilled work force to perform its operations e.g. in
Industrial Marketing Department all new hired sales executives are MBAs
Large-Scale economies:
Since Packages is a giant setup, so it enjoys the economies of large-scale as well e.g. its fixed
cost is reduced as it is spread over more number of units.
Good will:
No doubt, Packages occupies a respectable and trustable image and market reputation,
serving as a valuable asset for the Packages.
Advanced Technology:
To meet the quality requirements of its customers Packages contains the latest paper
producing and packaging technology and most of machinery is imported from different
countries like Germany, USA, Switzerland, etc.
Advance Payments:
In most of the cases and especially from new customers, Packages deals with the payments in
advance. So it has to put fewer efforts to recover the payments.
Training:
61
In Packages employees are given necessary and comprehensive orientation before starting
the job. Moreover other training programs are also arranged to keep the skills of employees
up-to-date.
WEAKNESSES:
Slow
Information Flow:
Information flow between regional offices (of Karachi, Islamabad) and production lines (Lahore)
is not very quick, improper and manual i.e. by post normally.
High Prices:
Packages deserve to charge high prices for its quality products but in this way, the companies
who are not financially sound or in development stage cant have access to the Packages.
OPPORTUNITIES:
1. There is a gradual increase in the awareness about Packaging importance among the
industrialists and they are really considering the packaging as the final sales person for the
products. So this awareness will bring more customers to the door of Packages.
2. Business activity and investment flow in also increasing day by day, so causing new business
opportunities for whole packaging industry.
3. Consumers and companies are becoming more conscious about the quality of the products
and Packages is quality leader in Pakistans packaging industry and having continuous
development plans for quality. So in near future it can bring huge revenues in the Packages.
4. Trend of sachets is also increasing day by day. Or in other words demand for flexible
packaging is increasing day by day.
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THREATS:
1. Packaging (especially flexible or poly packing) negatively influences the environment
by increasing the wastes. So this is a real threat for Packages.
2. Due to latest printing technology, the demand for offset printing is decreasing day by
day which is a traditional printing mode used in Packages.
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employees I discovered that it's not the labor class which is into leave the
company that frequently but the Engineers who are leaving rapidly.
On knowing this fact, I conducted several interviews with the present trainee
engineers and held telephonic conversation with trainees who left the
company in the past one year and gathered useful information to form the
basis of my research which will be discussed later in the study.
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Literature Review:
The issue of employee turnover all over the world has been widely discussed
in the empirical literature. Researchers have reported various reasons for
why employees leave an organization. This section summarizes some of the
research studies that have been done on employee turnover and is arranged
in an ascending order according to the year it was done in.
Employee turnover is a much studied research topic. There is a vast amount
of literature available on the causes of employee turnover dating back to the
industrial revolution. Researchers have developed multivariate models to
study various factors contributing to it and have empirically tested them to
find out the major reasons behind it. Price (1977) in his research defined
turnover as the cessation of membership in an organization by an individual
and their movement out of an organization.
Allen & Meyer (1990) investigated the nature of the link between turnover
and the three components of attitudinal commitment: affective commitment
refers to employees' emotional attachment to, identification with and
involvement in the organization; continuance commitment refers to
commitment base on costs that employees associate with leaving the
organization; and normative commitment refers to employees' feelings of
obligation to remain with the organization. Put simply, employees with strong
affective commitment stay with an organization because they want, those
with strong continuance commitment stay because they need to, and those
with strong normative commitment stay because they feel they ought to.
Allen and Meyer's study indicated that all three components of commitment
were a negative indicator of turnover. In general, most research has found
affective commitment to be the most decisive variable linked to turnover.
Griffeth (2000) re-examined various personal characteristics that may be
linked to turnover. They concluded that there were no differences between
the quit rates of men and women. They also cited evidence that gender
moderates the age-turnover relationship (i.e. women are more likely to
remain in their job the older they get, than do men). They also found no link
between intelligence and turnover, and none between race and turnover.
Hence there is little evidence of a person's gender being linked to turnover.
Griffeth also noted that noted pay and pay-related variables have a modest
effect on turnover. Their analysis also included studies that examined the
relationship between pay, a person's performance and turnover. They
concluded that when high performers are insufficiently rewarded, they leave.
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Research Question:
Sub Questions:
1. Are there any internal factors related to this high attrition level?
2. Is the attrition prevailing because of low monetary benefits?
3. Is the turnover increasing because of the work environment of this
department?
4. Will fringe benefits play any role to reduce the level of turnover?
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5. What are the employee's expectations with the job in this department
and how they can be fulfilled so the turnover can be reduced?
Research Methodology:
To get the answers for my research questions, this is how I went about the
research:
Firstly, I collected data from the internet regarding the employee turnover
issues all around the world, this helped me forming the background of the
research and I came to know about various reasons why employees leave an
organization. I read various articles and researches done by various authors
to get an idea about the reasons that have been identified till now by the
researches on this very important issue. Secondary data was collected from
various websites including JStore and various other online research resources
that will appear in the references at the end.
The literature review helped me in gathering all such causes but at the same
time I never remained stuck to them, I was always aware of the fact that
there can be more to it, perhaps there might be some issues which were
never previously addressed that can emerge in my research.
Then I had an in-depth interview with the HR Assistant Manager Miss Fatima
Mehmood to identify what she feels about this problem. From there I
collected some factual information and got an idea about issues prevailing in
the department. Even though she was not so sure about the reasons behind
the turnover issue but was concerned over this issue.
Then I carried out a focus group with 3 trainees and 3 engineers to get an
open idea about their problems and got a better know-how about why their
colleagues left the organization. I also conducted telephonic interviews with
some of the engineers who recently left the department.
Sample Size: From these unstructured interviews, I made a structured
questionnaire entailing various questions about the work related issues,
monetary benefits, motivation, job satisfaction etc. I floated the
questionnaire to all the trainees, engineers and the managers of the Flexible
business unit and got it filled by 30 respondents in total.
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From the filled questionnaire I tabulated the data and analyzed the research
results and came up with various interesting findings which will be of great
interest to the company in general and the HR department in particular.
12.
Authoritative jobs
13.
14.
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Dependent Variable:
Intention to leave
Analysis Question 3:
This question produced a mixed response, but the weight fell towards the
positive side. It indicated that respondents are satisfied working at Packages
limited. Although 26 percent fell in the negative category but majority were
satisfied working at Packages Limited, which can be taken as a positive sign
for the company as a whole.
Analysis Question 4:
The result to this question further clarified the issue, a heavy majority
responded that they are not satisfied working at Flexible Business Unit, now
this can be a cause of concern, where at one point majority indicated that
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they are satisfied working at packages limited, on the other hand the
majority was dissatisfied working at flexible business unit of the same
company, which indicates that something is certainly wrong with the
department's working.
Analysis Question 5:
When asked about the monetary benefits importance, that 87% considered it
either very important or important and only 13% considered it somewhat
important but none of the respondent went for not important or not at all
important. This can be very beneficial for the HR department as they can
motivate the employees with monetary benefits which are considered
important by them.
Analysis Question 6:
When questioned on non-monetary benefits, it produced a mixed result. But
again the majority 58% fell under the band from very important to somewhat
important, whereas 42% didn't consider it important. This indicates that
while choosing between monetary benefits and fringe benefits, the company
should give more weight to monetary benefits.
Analysis Question 7:
After getting a clasp of the weights attached with monetary and fringe
benefits, the respondents were questioned on the level of satisfaction with
the monetary benefits of their current job which produced interesting results.
Although majority of the respondents attached a high weight to monetary
benefits but the level of satisfaction with the monetary benefits of Flexible
business unit is low, as 60% were either dissatisfied or very dissatisfied with
the monetary benefits. This is a major cause of concern when respondents
attach a high weightage with monetary benefits.
Analysis Question 8:
When questioned about the fringe benefits of Flexible business unit, the
percentage of dissatisfaction was lower than that of monetary benefits, but
still the weight age fell towards dissatisfaction. 60% were not satisfied or not
at all satisfied with the non-monetary benefits. But this might not be a major
problem as importance attached to fringe benefits by the respondents is low.
Analysis Question 9:
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When asked about the workload at Flexible unit of Packages 87% of the
respondents considered it as a heavy workload. This can also be referred to
the focus group findings where the respondents complained about late
sittings and remaining in touch with office work even after office time. This
issue certainly needs attention of the HR department as well as the
management of flex department.
Analysis Question 10:
This question was asked to judge upon the job satisfaction associated with
the respondents current job at flexible business unit, the results showed that
75% of the respondents disagree or strongly disagree with the statement
which means the job is not up to their expectation and they are also not
satisfied with their current job. Throughout the business education, we study
the importance of job satisfaction, if it's low then the motivation will also be
low and employees are likely to leave, so the issue of job satisfaction should
be addressed immediately.
Analysis Question 11:
This question was asked to measure the 'Intention to leave' of the employee
which showed positive results, majority of the respondents have an intention
to leave as 86% of respondents agree to the statement that they think about
quitting their job and only 14% disagree to the statement, which is a
dangerous sign for the department and the company as a whole.
Analysis Question 12:
When asked about opportunity of finding a better job, the response was
mixed, 40% considered it likely to find a job and 60% considered it not likely,
which means a heavy percentage fell towards the 'Not Likely' category. This
can be attributed to two factors, either to the economic conditions of
Pakistan and referring to the focus group where respondents said 'Stuck in
packaging field' whereas Packages is the largest packaging company in
Pakistan, so they might not be able to find a better job than the current job.
Analysis Question 13 & 14:
100% of the respondents were males. And 93% fall in the age bracket of 2130, which means a very high percentage is youth, who have an urge to earn
more and more, hence if not loyal and satisfied with their job, they are likely
to leave. Hence corrective actions are instantly required.
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at present but can turn out to be a major disaster if the department keeps on
loosing employees at this pace.
CONCLUSION
In a nutshell, the study reveals a worrisome situation for the Flexible
business unit, where the intention to leave is around 86% which is rather
very high and needs immediate attention. The analysis reveals that amongst
the independent variables, pay satisfaction, workload and jobs satisfaction
are the ones which require immediate attention as they represent a strong
linkage with intention to leave.
A majority of the respondents attached a high weight to monetary benefits
but the level of satisfaction with the monetary benefits of quite is low, as
60% were either dissatisfied or very dissatisfied with the monetary benefits.
This is a major cause of concern when respondents attach a high score to
monetary benefits and has to be resolved immediately as the management
just have to make the salaries more competitive and no other rocket science
is involved in it except for giving a market rate.
Work load as indicated in the focus group as well is considered 'heavy' by
87% which is a huge majority indeed, therefore workload has to be
reconsidered and more staff needs to be hired. Moreover, job dissatisfaction
is a major concern, where 75% of the respondents are not satisfied with their
current job, which means there is a high gap between expectation and
reality, hence the job on the whole may have to be redesigned.
On the other hand 'Outside career opportunity' and 'Fringe benefits' are
amongst the one that can be addressed later on as the respondents attached
lesser weight to them, hence they are not amongst the grave problems.
Although outside career opportunity is an external factor, but making the
current job more lucrative, this variable can certainly be eliminated.
Once the monetary benefits will be enhanced, stress at work and after work
will be reduced it will enhance the job satisfaction, from which the working
environment will improve, the motivation level will increase and hence the
intention to leave will drop and so will the employees turnover.
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RECOMMENDATIONS
After the whole research, I have come up-to certain recommendations which
I have divided in three part, short-term, medium-term and long-term
strategies.
Short Term Strategies:
Exit interview with the employees and trainee engineers leaving the
company, to better understand the problems they faced because of which
they are leaving.
Communicate effectively with the employee to understand their concerns.
The department must consider work-life balance issue and must not overload
employees with late sittings.
The company must do costing of employees leaving at such a high pace
(Both direct and indirect costs associated with the turnover)
Medium Term Strategies:
Packages must keep pay in line with the market rates to avoid high attrition
rate particularly in flexible business unit
They must offer an attractive benefit packages to the engineers.
HR department should recruit the employees effectively
Long Term Strategies:
The department should provide clear career path so that the employees
don't think about outside career opportunities.
Loyalties with the department and the company as a whole need to be built
so that the company doesn't loose upon precious human capital.
Source: (Ideas taken from Chapter.11 Managing Careers, Human Resource
Management 11/E by Gary Dessler) and IDS (2000), Improving staf
retention, IDS Studies No. 692, July 2000.
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http://www.packages.com.pk/global-partners.jsp
http://www.packages.com.pk/folding-carton.jsp
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