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Service Industries Limited

INTERNSHIP REPORT ON

Servis Industry limited

Internship Report submitted to the Faculty of Management & Administrative Sciences in


Partial Fulfillment of the Requirements for the Degree of Master of Business Administration.

Program & Session MBA 2012 to 2015

UNIVERSITY OF GUJRAT

Date of Submission

13/09/2013

Name of Program Coordinator ___________________

Signature of Program Coordinator_________________

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Acknowledgement

“IN THE NAME OF ALLAH, THE MOST GRACIOUS AND MERCIFUL, THE BENEFICENT”

First of all I would like to bend over my head in front of ALMIGHTY ALLAH. It was HE who
direct me in every stage of my life, and who bestow me with capability to accomplish the best
and helped me to conquer every attempt and difficulty in every field of life. Without His help,
we cannot accomplish any objectives in our lives.

Thanks are also due to last Prophet HAZRAT MUHAMMAD (peace be upon him), through
whom Almighty Allah communicated knowledge to mankind and who is forever a torch of
guidance and knowledge for whole humanity.

I extremely thank full to my honorable teachers who helped me to complete my report as it is


compulsory part of the Master in Business Administration because perhaps I would not be
able to write such a report without their help and cooperation.

Especially I am very thankful to the Head of Human Resource department Deputy HR


Manager of Servis Mr. Saleem Nawaz who organized my internship program. I am very
thankful to my supervisors who help me in my learning activities during my internship.

Finally, I am very thankful to my family and my sweet friends for their prayers, love and
encouragement and their faith in my abilities. The completion of my work is the result of their
co-operation and moral support. Without their co-operation and support, a project like this is
difficult at best.

Thanks All!

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Table of contents

S. No Title Page No
1 Executive summary 5&6
2 Main body of report 8 to 22
2.1 Introduction 8 to 9
2.2 Overview of the Organization 9 to 22
2.2.1 Brief history of service industry 9 to 11
2.2.2 Nature of the organization 11 & 12
2.2.3 Business volume, Reward, honors& success stories 12 to 13
2.2.4 Product/service lines 14 to 17
2.2.5 PESTLE analysis 18 to 20
2.2.6 Contribution toward economic development 21 & 22
2.3 Organization structure 23 to 30
2.3.1 Organizational hierarchy Chart 23
2.3.2 Number of employees 24
2.3.3 Main offices 24 & 25
2.3.4 Introduction of all departments 26 to 30
2.3.5 Comments on the Organization structure 30
2.4 Internee work 32 to 51
2.4.1 Brief introduction of internee’s office/branch 32
2.4.2 Details of supervisors 32
2.4.3 Weekly timetables 33 to 38
2.4.4 Detailed description of the departments operation/activities 39 to 44
2.4.5 Detailed description of tasks which i did in my internship 45 to 51
2.4.6 Summary of learning 52 to 53
2.4.6.1 Skills and qualification gained from the internship 52

2.4.6.2 Kind of responsibility undertaken during the internship period 52 & 53

2.4.6.3 Internship will influence future career plans 53

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2.4.6.4 Internship activities correlated with classroom knowledge 53

3 Conclusion of the report 54 to 57

3.1 summary of key Conclusion derived from internship experience 54

3.2 General observations about Servis 54

3.3 SWOT 55 to 57

4 Recommendations 58

5 References 59

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EXECUTIVE SUMMARY
The Servis is Pakistan's famous shoes brand. Servis is Pakistan’s largest footwear
manufacturer and exporter. The Servis is founded by Ch. Nazar Muhammad, Ch.
Muhammad Hussain from Gujrat and Muhammad Saeed from Gujranwala more than 50
years ago. In Lahore they started their business of shoe manufacturing by installing a
manufacturing plant in1954.The Service has it’s headquarter in Lahore and factories in Gujrat
and Muridke. Now company is involved in making worldwide shoes, tyres, tubes and rubber
production facilities. Service industries have strong culture. With a strong emphasis on
product quality, SIL has built both domestic and international recognition of company’s
products. The main purpose of the internship is to gain and knowledge from practical work,
prepare and submit the report in UOG because it is the partial requirement of my degree and
it will give me benefit in my future plans. It has different strengths and weaknesses but also
have threats and opportunities in market. Report findings are as follows. That there are many
problems that industry is facing. Some problems are:

 Lack of new products.


 Lack of promotional activities.
 Not a fashion oriented brand.
 Functional problems in departments.
 Centralized decision making.

I have performed a number of activities in Service Industry during my internship period.


Some are as follows:

 Employee Status Updating.


 Approving Leaves.
 Entering miss timing of employees.
 Record of Dead Files.
 Calculate retail tax amount.
 Record the import details.
 Entering personal information of workers.
 Entering receipt invoices.

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 Posting.
 Issuing warning letter.
 Issuing dismiss letter.
 Making charge sheet.

Company should make its distinctive position in such area of competition by providing more
effective services so that it will get succeeded and earn more profit than their competitors.

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Part-I

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2. Main body of report

2.1. Introduction of study:-

All the students of Master of Business Administration are required to spend some weeks in
any financial institution/ commercial banks for getting practical experience. I choose Service
Industry Gujrat for getting the practical exposure. Service Industry Limited (SIL) is publicly
limited company listed on the stock exchanges of Pakistan and the largest manufacturer of
footwear tires and tubes for two wheelers and has been the largest footwear exporter of the
country for last 10 years.

Servis industry is today an efficient, progressive and customer oriented organization. Servis
is also involves in many Social activities, it has been a regular contributor to community
welfare, charities, and causes. It has developed a wide range of consumer products, to
enhance business and accommodate to the different segments of society.

Scope of the study:-

Servis industry Limited is one of the oldest and well reputed organizations in Pakistan. The
scope of my work is based on observation service industry, but due to shortage of time, I
worked in special department of industry. So, I decided to work in accounts department of
industry. There is not too much work in accounts department so I worked in HR department
as well. It was a good opportunity for me to involve in Finance and HR Department of a huge
and well established industry.

Purpose of study:-

Servis Industry is a large and well established organization in Pakistan. So, I prefer servis
industry in order to set knowledge of this organization for the internship. The purpose of
study is to functioning of industry to analyze the overall performance of Servis Industry
Limited and to analyze the theoretical application of finance. The main purpose of the study
is to gather the relevant information to compile internship report on Service Industry Limited
Gujrat and practical operations of the organization.

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My aims of doing internship are:

 To work practically in the organization and correlate my class room knowledge with
reality.
 To acquire practical experience for my future career.
 To get awareness about the management work.

Objectives:-

There are some objectives behind this study. My objectives of doing internship are:

 It is the requirement of MBA course that all students of MBA have to spend 6 weeks in
any organization to get practical exposure. So, it is the partial requirement of my degree
to do internship.
 To develop skills and techniques that directly applicable to my career.
 Check that how bookish knowledge is implemented in reality.
 To learn the practical activities of finance department.
 To get some practical exposure for job.

2.2. Overview of Organization

2.2.1. Brief History:-

Service Industries Limited (SIL) is a public limited company listed on the stock exchanges of
Pakistan. It has annual revenues of about PKR 12 billion ($130 Million) and is the largest
manufacturer of footwear, tyres & tubes for two-wheelers, and has been the largest footwear
exporter of the country for the last 10 years.

The company employs more than 6,000 people in its facilities located in Gujrat and Muridke
and exports its products primarily to Germany, Italy, France and the UK. With a strong
emphasis on product quality and innovation, SIL has built both domestic and international
recognition of company’s products. The visionary leadership and hardworking management
team has led SIL to hold this top position in the business arena. The Board and Management
comprises of:

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Chairman

Mr. Ahmad Javed

CEO

Mr. Omar Saeed

Board of Directors

 Mr. Arif Saeed, Mr. Omar Saeed, Mr. Ahmad Javed, Mr. M. Ijaz Butt, Mr. Hassan
Javed, Mr. Ahmad Shahid Hussain, Mr. Hamid Hussain, Mr. Riaz Ahmed and Mr.
Manzoor Ahmed

Group Executive Committee

 Mr. Arif Saeed, Mr. Omar Saeed and Mr. Hassan Javed

Management Team

 Mr. Ghulam Muhammad (GM SIL Gujrat Factory), Mr. Adnan Wasal (GM SIL Muridke
Factory), Mr. Jawwad Faisal (Chief Commercial Officer), Mr. Sohail Chaudhry (GM
Domestic Sales), Mr. Muhammad Usman Amjad (Chief Financial Officer), Mr. Hassan
Ehsan (Head of Exports) and Mr. Hyder Chaudry (Head of Human Resource

The Servis Industries is Public Limited Company Incorporated as a Private Limited Company
in 20th March 1957 under the Companies Act 1913 and converted into Public Limited
Company on 23rd September 1959, having its registered office located at Lahore.

The story of ‘Servis’ begins with a group of friends - young, energetic, fresh from college
who established Service Industries more than 50 years ago. These young men, named Ch.
Nazar Muhammad (Late), Ch. Muhammad Hussain (Late) – both from Gujrat district and Ch.
Muhammad Saeed (Late) from Gujranwala District, started business in 1941 at a small scale
in Lahore. At that time, they were only manufacturing handbags and some other sports
goods. Within years their business flourished remarkably and they were supplying their
products to every corner of India at the time of partition.

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In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. This
started production in the same year. The industry started manufacturing various types of
shoes. Later management shifted the factory from Lahore to Gujrat. Service Sales
Corporation (Pvt.) Ltd. the Group’s marketing company was established in 1959. Humility,
fairness, and respect were the values close to the heart of these founders and it were these
values that led to phenomenal success of the Group over the years.

Today, the production side of the company has flourished into Service Industries Limited
(SIL) which has world-class shoes, tyres, tubes and rubber production facilities in Gujrat and
Muridke. SIL is also the leader exporter of footwear. Service Sales Corporation (Pvt.) Ltd.
(SSC) is today Pakistan’s leading footwear retailer that has set new record standards and
created new benchmarks in the retail industry.

A humble venture of friends has grown into a Group that makes a difference in lives of
millions of people every day today.

2.2.2. Nature of the Organization:-

Service Industries Limited (SIL) is largest manufacturer of footwear and tyres & tubes in
Pakistan. Servis Group is one of the most respected corporate citizens of the country and
has a rich heritage spanning over half a century. Today the Group is Pakistan's largest
footwear manufacturer and exporter with interests in wholesale and retail sectors. With a
growing portfolio of brands and a nationwide network that touches millions of lives every day,
Servis is one of the leading brands in the country. The Service factory is producing the
following products:

 All categories of leather footwear and sports shoes.


 Canvas shoes of Men, Women and Children.
 Rubber Sandals and Sleepers.
 Safety shoes and Footwear for defense force.
 Bicycle tyers and tubes.
 Car tubes.
 Motorcycle tires and tubes.

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The company's registered brand name is 'SERVIS'. It is the largest exporter of footwear from
Pakistan and has maintained its top position. Servis footwear are available throughout
Pakistan at fixed price through a chain of 258 retail stores and 15 whole sale depots run by
Service Sales Corporation Lahore (Pvt.) Ltd. In addition to company's own retail stores,
thousands of shoe dealers / stockiest are selling Servis Shoes in the country.

Servis has been a trend setter in footwear fashion in Pakistan. It introduced colorful joggers
for the first time in Pakistan in early eighties. Product innovation has been an important part
of Company's Marketing Strategy. New product range is offered twice a year, at the
beginning of summer and winter seasons.

2.2.3. Business volume:-

Sales 2011 2012 Increased By

Sale of footwear (Net):

Export sales Rs.2,958,565 Rs.2,580,580

Local sales Rs.4,306,539 Rs.4,039,503

Total Rs.7,265,104 Rs.6,620,083

Sale of tyre and tube (Net):

Export sales Rs.243,015 Rs.307,472

Local sales Rs.3,976,112 Rs.5,174,172

Total Rs.4,219,127 Rs.5,481,644

Sale of technical rubber products (Net):

Export sales Rs.5 Rs.1,345

Local sales Rs.64,793 Rs.64,195

Total Rs.64,798 Rs.65,540

Total sales Rs.11,549,029 Rs.12,167,267 5%

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Overall revenue of the company is increased by 5% in 2012. The tyre and tube sales
increased by 30% due to increase in sale the service tyre got the “Best Export performance
Award” Whereas the footwear sale showing declining trend during the year and it is
decreased by 9%.This shows that the increase in sale of Tyre and Tube division is much
more than footwear. Company is in profit due to its tyre and tube sale.

2.2.3. Reward honors and Success stories:-

Servis Industries Limited (SIL) is a public limited company listed in Karachi and Lahore stock
exchanges. It is purely engaged in the manufacturing and sale of footwear, tyre tube and
technical rubber products.

1. Celebrating 50 Years of Happiness:-

Company has celebrated its 50 years of great success. Now it is leading footwear brand and
retailer in Pakistan. The Company started its journey with single retail store and now it has
more than 400 outlets all over Pakistan and progressing internationally. It exports products to
Europe, Middle East and many other countries.

2. FPCCI Trophy:-

Servis Company was awarded with “Best Export Performance Award” by Federation of
Pakistan Chambers of Commerce and Industry (FPCCI) for increase in sale of tyre and tube.

3. Best Vendor Performance Award:-

In recognition and acknowledgement of exceptional performance and exemplary service,


Atlas Honda Limited recently awarded Servis Tyres with the “Best Vendor Performance
Award” for 2012.

4. ISO 9001, certified company:-

Servis is a member of Satra, so they follow Satra guidelines for quality check of shoes.
Service got the ISO certificate because they are fulfilling their quality requirements.

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2.2.4. Product lines of Service:-

Two main product lines of Service are:

 Footwear
 Tyres and tubes

Footwear Products:-

Service is leading footwear brand and retailer. Service is continuing its journey on the road to
“feel good” by connecting three generations in the thread of happiness. Service Sales
Corporation is responsible for marketing the footwear products in local market. Service is
producing variety of footwear products. Following are registered Brand in this product line:

DON CARLOS:-

DON CARLOS is the first men’s mega brand in Pakistan. It


is the men’s style leader in the footwear industry. The brand
features fine craftsmanship and distinctive design with
hand-crafted details and cutting-edge quality. It includes
casual and dress shoes along with sandals.

CHEETAH:-

CHEETAH is Pakistan’s leading sports and


performance footwear brand. It has come to
symbolize the sportsman’s spirit and passion
having no parallel on the ground. It is known
for its durability and comfort and has won
brand winning award in 2008. The brand
offers a variety of sports shoes including
Cricket, Football, Tennis, Hiking, Outdoor and
Basketball. The brand also includes sport and
casual shoes for women as well.

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CALZA:-

CALZA is a brand that has its inspiration


rooted deep in Pakistan and its culture. The
unique style and amazing comfort of CALZA
have made it Pakistan’s most favorite
slipper.

It is a brand for the man who accepts


challenges for everyday life with a smile;
motivated for more but doesn’t forget their background. Their product range includes
affordable slippers, shoes and sandals for wearing in different weather conditions, but mostly
used in summer.

LIZA:-

LIZA is the most acknowledged women’s footwear brand in


Pakistan. It is a casual and comfort wear shoe, for different
occasion and moods of a woman with a happening lifestyle.
The product includes sandals, slippers and shoes. It is stylish,
lightweight and comfortable brand for smart look and adds a
unique flair of style to your walk.

SKOOZ:-

SKOOZ puts a whole new spin on student’s life with comfortable and durable shoes that are
perfect for fun on and off the schoolyard. The product range covers school shoes for boys
and girls.

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TOZ:-

TOZ is a brand that brings a colorful


world packed full of fun and adventure
for kids. It includes shoes for boys and
girls with vibrant color and attractive
styling. TOZ product line contains
variety of sandals, chapels and close
shoes for kids. Extra care is required for ensuring fit, comfort and safety in product design.

SOUL COLLECTIONS:-

Soul Collections is premier ladies fashion footwear brand. The brand is based on
fashionable, trendy and affordable ladies footwear. The product line includes shoes for
casual, formal and party wear. It is for those ladies who prefers graceful appearance and to
look good, stylish and beautiful.

Tyres and Tubes:-

Service Industries Ltd is the pioneer in tyres and tubes


manufacturing in Pakistan since 1970.Servis is market
leader in bicycle tyres and tubes and hold solid share
of motorcycle tyres and tubes market. Servis is major
supplier of tyres and tubes to Japanese motorcycles
manufacturers like HONDA, YAMAHA and other local
motorcycle assemblers in Pakistan. The major brands
of Tyre and Tube for auto and bicycle are as follows:

 Long Life (Auto and Bicycle)


 Long Life Load (Bicycle)
 Cheetah (Bicycle)
 Cheetah Plus (Auto and Bicycle)
 Hi-Speed (Bicycle)
 Super Star (Bicycle)

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 Racer (Bicycle)
 Golden Star (Bicycle)
 BMX Silver (Bicycle)
 Super Trail (Auto)

Other Products:-

Following are the some other products being produced at Service Industry Limited Gujrat:

 IV Tube (Surgical)
 Gas Mask (Defense)
 Auto Parts (Auto)
 Hand Grenade Body (Defense)
 Mine Body (Defense)
 Tank Track Pad (Defense)
 Bogh Wheel (Defense)
 Footwear for Defense Forces (Defense)

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2.2.5. PESTLE Analysis:-

PESTLE analysis is concerned with


macro environmental framework
used to understand the impact of
external factors on strategic
development of a business. These
external factors are political,
economic, social, technological, legal
and environmental.

Political Factors:-

The political situation of Pakistan is not satisfactory. Due to the rapid change in the
Government every government sets its own new trade policies.

Following are the effects of political system on Servis:

 High taxation on growing industries


 Political interference does not leave independence in work.
 Trading policies will change.
 Change in complexion and composition of legislatures.
 Government’s policy in the economy.
 Terrorism.

Economic Factors:-

The economic condition of Pakistan can also affect the foreign investors increasing inflation
rate make the cost of production high and thus reduce the profit margin of the investor. Some
economic factors that affect the footwear industry are as follows:

 Increasing energy and input prices leads to an increase in cost of production that
influences the expected production of the industries and the exports.
 One of the problems in growth of service industry is higher energy prices.
 Inflation and interest rates also affect the industry.

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 Skill level of workforce.


 Staff cost is very heavy.
 Heavy operating cost occurs in daily working.
 One of the economic factors is changes in exchange rates.
 Labor costs.
 Economic growth rate.
 Efficiency of financial markets.

Social Factors:-

In Pakistan the life style of people is changing with a fast pace. The change in the lifestyle
and needs in different demographics also affect the demand of customers.

Following are the social issues faced by Servis:

 Consumer attitude and demand of products.


 Changing life style.
 Class structure.
 Demographics.
 Media vies of industry.
 Cultural restrictions to save money.
 Entrepreneurial spirit in people.
 Buying trends of people.

Technological Factors:-

These factors pertain to innovations in technology that may affect the operations of industry.
The technology can cause tremendous in quality and quantity of products and this affect the
market position of company.

 Competitor technology development is the biggest problem faced by industry.


 Inadequate communication infrastructure.
 Technology’s impact on product offering.
 Lack of networking facilities.
 Online selling facilities.

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 Research and innovation.

Legal Factors:-

Legal factors relates to law, regulation and legislature that affect the way the industry
operates. Service industry is a legal public limited company. It is fulfilling the entire legal
requirement for becoming the public limited company. It is also satisfying all the legal
requirements of workers e.g. all the workers are associated social security and they are
getting every benefit which is legally required by Government of Pakistan.

Following are the legal concerns:

 Restrain on import material.


 Restrain on export.
 Tax regulations.
 Quota policies.

Environmental Factors:-

Environmental factors relates to ecological and environmental aspects that will affect the
demand for service products and affect their business operations.

 Impact of adverse weather.


 Environmental regulations.
 Ecological regulations.
 Geographical changes.

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2.2.6. Contribution of Organization towards economic development:-

SIL is contributing a lot of towards economic development. Service industry in Gujrat remove
the unemployment in Gujrat and other cities providing jobs also improve the living standard of
people. It is providing job to 6000 people. Due to increase the revenue of industries the
contribution towards economic development also increases.

Service industries export is its main source of generating revenue and also pay healthy
amount of tax to government every year. It provides internship opportunity to number of
students throughout the session. Service is also contributing to social development.

Corporate Social Responsibility:-

Corporate Social Responsibility (CSR) is the commitment of corporate entity to participate in


economic and social development of its employees and society. Service believes that CSR is
more than taking up initiatives; it is about solving problems that will improve lives in our
community. IL Practices CSR through the followings:

 Occupational safety and health:


Service tailored their processes in a conscious effort of providing safe, injury and illness-
free environment to their employees.
 Loan facility:
Service Industry provides loan facility to their employee without charging interest rate.
 Flood relief operations:
Service industry and its employees acted collectively and participated in flood relief
operations.
 Consumer protection measures:
Service is committed to producing quality products which exceeds our customer’s
requirements which help them to achieve their foremost concern i.e. customer
satisfaction.
 Employment of female and special person:
Service encourages the employment of females and special person. They have several
females are working in various roles. Moreover, a separate production line in Gujrat
factory is managed by females only.

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 Business ethics and ant corruption measures:


Service is renowned for quality and highest principles of business ethics. They have a
commitment of conducting their business with honesty, integrity and in full compliance
with applicable laws and regulations.
 Energy conservation and environmental protection measures adopted to protect the
environment.
 Contribution to community welfare, charities and causes
 Donations.
 Sponsorship.
 Free shoes.

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2.3. Organizational Structure:-

The entire organizational authority is represented by the help of Organizational Chart, which
is headed by a Resident Director. The management structure of SIL is as follows:

2.3.1. Organizational Hierarchy Chart:-

General Manager

Costing Maintenance Commercial H.R


Planning

Factory manager

MCTT CTT

MC Tire MC Tube BC Tire BC Tube

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2.3.2. Number of Employees:-

Company has started the operations with few numbers of employees. Now it has become a
group of industry and accounted in large organizations of Pakistan.

It currently employs close to 9000 people in its following companies:

 Service Industries Ltd


 Service Sales Corporation (Pvt) Ltd.
 Servaid Pharmacy (Pvt) Ltd.

The total numbers of employees related to footwear & tyre division are more than 8000 out of
which more than 5000 are working in Gujrat factory and 3000 are at Muridke factory
remaining at head office.

2.3.3. Main Offices:-

The Service factories have their Head Office in Lahore. Their finance, sales and marketing
departments are also working at head office.

Following its main offices:

1. Service Industries Limited

Head Office:

Service Industries Ltd,

Service House, 2 Gulberg, Lahore, Pakistan

Factories:

G T Road, Gujrat

Sheikhupura Road, Muridke, Pakistan

2. Service Sales Corporation (Pvt.) Ltd.


Head Office:
Service Sales Corporation (Pvt.) Ltd.

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EFU House,6-D Main Gulberg, Jail Road Lahore, Pakistan.


3. Product Development Center:

Service Sales Corporation (Pvt.) Ltd.

Office No.204 Siddiq Trade Center,

Gulberg, Lahore, Pakistan.

4. Shoe Planet Private Limited:

Corporate Office Shoe Planet,

Servis House, Gulberg, Lahore, Pakistan.

5. Servaid Pharmacy:

Servaid Pharmacy (Pvt.)Ltd.

6. UAE Offices:

Service Sales Corporation

Murshad Bazar, Deira

Dubai, UAE.

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2.3.4. Introduction of all Departments:-

Service has divided its departments according to their functions. Each department is
responsible to handle different tasks. It has number of employees being headed by a
department’s head, which is mostly a manager. The departments are inter-related to each
other. Thus the performance of one sector affects the activity of others. Managers have the
authority, so they are responsible for group performance. Following is the list of departments
working at Service Industry Ltd Gujrat.

1. Human Resource Department:-

The HR department plays vital role in the prosperity of organization. In SIL Gujrat the HR
department develops job description, organizational chart, resolve conflicts among
employees and define responsibilities and authorities of employees, who manage, perform
and verify their work accordingly. The HR department is responsible to provide the
manpower to the all other departments and training and development of employees. The
department also receives demand of employees from the department heads where the
employees needed. The HR staffs evaluate the job with the head of department and after
approval by the general manager and then the HR assistant manager appoint the person.

2. Industrial Relation Department:-

The department maintains the record of workers like HR department. In the Service
Industries Ltd Gujrat record of staff is maintains by HR and record of workers is maintains by
IR department. This department arranges the classes of newly appointed workers. It takes
necessary actions against complaints to settle down the disputes and differences among
employees. It maintains good relations among employer and worker.

3. Production Department:-

It involves the production of producing the products. In manufacturing concern business the
largest and most important department is production. The production department is divided
into following departments according to their product and brands they produce and
operations they perform.

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 Leather Shoe Factory:-

Leather shoe factory is concern with the production of footwear. It is headed by the factory
manager. Further this department comprises several departments and sub-departments. In
leather shoe factory main departments are Lasting and PU. In lasting departments
assemblies lines produce chapels, sandals and children shoes. The other departments
include in LSF are as follows:

 Planning.
 Upper cutting.
 Upper closing.
 Assembly.
 Lasting.
 P.U. and Sole making.
 Tyre and Tube Department:-

The tyre and tube produce tyres and tubes. It is also controlled by managed by factory
manager. It is tough for workers to work in these departments. Following are its main sub
departments.

 Planning.
 Motorcycle Tyre Tube (MCTT).
 Cycle Tyre Tube (CTT).

4. Accounts Department:-

Accounts department is responsible to provide the picture financial condition of the company.
One manager along with deputy manager and assistant manager is leading the accounts
department. Double entry book keeping is being used by the company. This department is
divided in to two parts. One part is purely accounts in nature and while other is with wages
and salaries issues. This department is deals with salaries, wages, receipts accounts
receivable, payments accounts payable, sanctioning loans and accounts management. The
wages to workers are paid fortnightly while salaries are paid monthly.

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5. Information Technology (IT) Department:-

IT department of SIL Gujrat is responsible to manage all the activities related to computer
systems and database.IT department is working as the system support for all other
departments it helps them perform their activities efficiently and effectively. There are many
reasons of implementing management information system. This information system helps the
managers in decision making.

6. Costing Department:-

Costing department performs very important function it allocates the material and their
quantities to be required for the bulk production and prepare cost sheet each article. This
department is further divided into two sections.

 Costing footwear.
 Costing tyre division.

Department receives the orders from planning department and raise the bill of material that
includes how much material to be required to produce the order and how much values it
carries. It works on the basis of specifications received from model room and standard rates
of material received from material management.

7. Material Management:-

Material management perform vital role in the company. This department deals with all type
of purchases. This department is divided into two sections local and foreign purchases
(imports).The department is responsible for working on inventory management and arrange
the material timely. Manager of material management is responsible for ensuring the delivery
in time and manage the raw material inventory. Whole production is depending on it. There
are various sub departments heads that are responsible for reporting to manager of material
management.

 Procurement Department:-

Procurement department raise the purchase order on the basis of bill material that receive
from costing department and made all adjustment of material to avoid dead stock.

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Department establish and maintains relation with suppliers and ensure them to delivery
within the lead time. Lead time for local purchase is 40 days and for import are 3-months.

8. Industrial Engineering:-

Quality assurance manager is appointed to check the quality matter and responsible to the
responsibility of this department is to measure and improve output and operational efficiency
of the production unit. The department is responsible to find discrepancies and try to remove
them. So that production does not suffer and produce with full capacity.

9. Engineering support:-

It is a supporting department. Chief engineer leads this department. This department consists
of number of engineer and technicians. This department supports in term of:

 Maintenance of various types of molds which is used for production.


 To monitor and controlling the compressor work efficiency.
 To monitor and controlling the boiler work efficiency.
 Maintenance of tyre and footwear division.
 Checking and controlling carpentry section.
 Checking power house working.

This department is responsible for smooth running of assets and maintenance of all the
machinery after a specified time.

10. Technical Support:-

Chief Technical Manager is the head of this department. All material that includes process of
chemicals is controlled by this department. It includes:

 Raw rubber processing.


 Main laboratories.
 P.V.C
 Molding pressing.
The laboratory inspects the incoming material which required lab test that they free from
band chemical and recording their specifications.

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There are two laboratories at SIL Gujrat one for shoe division called main laboratory and
other for tyre division.

11. Quality Assurance Department:-

Deliver the goods to finished goods go downs to avoid end customer complaints and to
maintains company’s goodwill. It is duty of quality assurance manager to look after the
claims. The company ensures that quality policy is understood, implemented and maintained
at all levels of organization to guarantee maximum benefits and achievements in shortest
possible time. The Management Review Meetings are held to review the quality system at
defined intervals to ensure its continuing efficiency and effectiveness for satisfying the
requirement of ISO 9001:2000 standards.

12. Security Department:-

In industry security department is responsible to maintains law and order situation inside the
factory. They are responsible to handle any misconduct and to keep the eye on workers to
stop theft. The security staff is appointed at gates and other important places of factory.
Automatic security system is installed in factory close circuits cameras are fixed to check out
activities inside the factory.

2.3.5 Comments on the Organizational Structure:-

The structure of service industry limited Gujrat is functional. Hierarchy of each department is
defined according to the needs of organization. It has large number of departments in which
positions are grouped according to their main functional area. There are many advantages of
functional organizational structure which are as follows:

 Interdepartmental coordination is facilitated and it improves efficiency.


 Specialized technical competencies may be developed and may gain a competitive
advantage.
 Employees have clear career paths with their specified functions.
 In depth development of expertise is encouraged.
 Resources are used more efficiently

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Part-II

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2.4. Internee Work

2.4.1. Brief Introduction of Internee’s Office/Branch:-

My internship period at Service Industry Limited was from 11th July 2013 to 21st August
2013.During this period of six weeks I focused on my work and tried to learn as much as
possible. The following are the departments where I worked as an intern and experienced
good time with the Servis employees.

 Human Resource (HR) Department.


 Accounts Department.
 Industrial Relation (IR) Department.

2.4.2. Details of Supervisor:-

I have spent two and a half week days in HR department and worked with the supervisor.

 Mr. Hafiz Muhammad Arshad.(Assistant to HR manager)

During the weeks that I have spent in Accounts department my supervisor are:

 Mr. Hassan Taqveem.(Assistant Accounts)


 Mr. Usman Zamir.(Trainee Accountant)

I have spent one week in IR department and my supervisor is:

 Mr. Arshad Mehmood.(IR Officer)

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2.4.3. Weekly Time Table:-

Following are the schedule or time table of mine at work place, which contains the summary
of my activities and task performed.

Week 1

24 July to 30 July 2013

Human Resource Department

Supervisor: Hafiz Muhammad Arshad

Date Activities

24th July My supervisor told me how to approve leaves of employees and help
Mr. Arshad in updating the missing times of employee attendance.
25th July I was told by my supervisor how to update missing times of employee
attendance due to fault of time machine. Then he gave some
applications regarding this issue to update them in HRIS.
26th July I approve leaves and update in and out missing timing of employees
and help internee colleague in file management.
29th July I have learned how to check details of applications of employees and
approve leaves of employees.
30th July I was absent.

Mr. Hafiz Muhammad Arshad

Supervisor’s Signature:-

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Week 2

31 July to 06 August 2013

Human Resource Department

Supervisor: Hafiz Muhammad Arshad

Date Activities
31st July I approved leaves and record the data of those employees who leave
the organization for this purpose is used MS Excel.
01st August There were some letters like salary increment, resignation, contractual
agreements and appointment letters for the month of July, I was asked
to attach these letters in the file of HCM.
2nd August I was absent.
5th August Learn and then update the Status of employees who transferred or left
the organization. I update the summary of employees in their personal
files manually.
6th August I learnt about entering personal data of new employees in HRIS.

Supervisor’s Signature:-

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Week 3

07 August to 13 August 2013

Human Resource & Accounts Department

Supervisor: Hafiz Muhammad Arshad

Date Activities
7th August I have stamped the educational documents of employees and then
attach these documents in the file of General Admin and help Mr.
Haseeb in entering data of new workers in HRIS.
8th August Eid ul Fitr Holiday.
9th August Eid ul Fitr Holiday.
12th August I approved leaves and then I am transferred to Accounts department. I
attach the purchase vouchers with their invoices and sale invoices with
their summary and mark stamp on the sale invoices.
13th August I have attached the sales tax invoices with their vouchers and goods
decelerations with their receipts. Find out the sales tax recoverable in
an excel file and record the imports details in import purchase register
in MS Excel.

Supervisor’s Signature:-

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Week 4

14 August to 20 August 2013

Accounts Department

Supervisor: Mr. Hassan Taqveem

Date Activities
14th August Independence Day Public holiday.
15th August Check the receipt invoices details whether they are correct or not. Attach
purchase invoices with their vouchers.
16th August Learn how to calculate retail tax amount and then I did practice. I have
learn and then find receipts in system that are missing from the file of
receipts voucher for the month of jun.
19th August I have entered the personal data of footwear workers. For this purpose I
used MS Excel. Write details on the file of purchase vouchers for the
month of June
20th August I was assigned by Mr. Sarfraz to calculate tax application on invoice
payment.

Mr. Hassan Taqveem

Supervisor’s Signature:-

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Week 5

21 August to 27 August 2013

Accounts Department

Supervisor: Mr. Hassan Taqveem & & Mr. Usman Zamir

Date Activities

21st August Record the detail of employees and attach invoices with voucher.
Write details on the file of receipt vouchers for the month of June.
22nd August I was absent.

23rd August I was assigned to enter receipts invoices details in system for the
purpose of making receipts vouchers. Calculate retail tax amount.

26th August I have made the certificate of collection or deduction of tax letters. I
was assigned for the posting of payments in ORACLE (system).
27th August Understanding the whole purchase cycle. I have entered the import
details in excel. Learn how to enter import invoices/import cost sheet
data in ERP.

Mr. Usman Zamir

Supervisor’s Signature:-

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Week 6

28 August to 03 September 201

Industrial Relation Department

Supervisor: Mr. Arshad Mehmood

Date Activities
28th August I was instructed about making ten day notice and second showcase
notice. I filled these notice under the guidance of my supervisor and
then dispatched them at employees addresses.
29th August I have made the files of new workers and did posting in nominal
register.
30th August I have learnt how to made charge sheet and wrote the charge sheet
against misconducts of worker.
2nd My supervisor told me about the difference between the terminations
September and dismiss with different condition. I have made some termination and
dismissal letters for workers.
3rd I was assigned to made ten day notice and second showcase notice
September and made files of new workers.

Mr. Arshad Mehmood

Supervisor’s signature:-

Miss. Naila Afzaal student of university of gujrat worked six weeks in Service Industries
Limited (Gujrat) for her internship and she completed all activities and tasks very
successfully and efficiently.

Signature of HR Manager:

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2.4.4. Detailed description of Internee’s Departments

Human Resource Department

Human Resource Department manages the organization’s workforce. It is the toughest task
to manage the human rather than managing any resource else. The HR department acts a
bridge between the organization staff and top management.

The activities performed by HR department are: hiring, selection, retain the workforce of
sufficient quality and quantity, payroll management, organize duties and profiles of each and
every personnel, ensuring training of new employees, ensure compliance with labor laws,
strategy development etc.

Functions of HR Department:-

Primary objective of this department is to provide and maintain Human Resource of required
competency. Human Resource may set strategies, develop policies standards, systems and
processes and may supervise the managers of different department. Following are the major
functions performed by HR department in Service Industry limited:

1. Organizational Strategy:-

HR strategy pertains to how to implement the specific functions of HRM The HR department
develops the human resource planning for assessment of current staff available and forecast
the future demand of workforce needed. They make staffing strategies and suggest the top
management how human capital affects organizational success. The HR strategic
management participates in corporate decision making.

2. Recruitment:-

Recruitment is the process of attracting, screening and selecting employees for the
organization. The HR department recruits both the workers and the staff. The recruit process
starts with the placement of demand by the departments. Mostly recruitment of workers and
lower level staff is done internally references are used. But for the post of upper level staff

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and managers, newspaper and companies website is used to display ads of job. They may
consider the relevant available CVs as well. They can also fire the employee for bad
performance.

3. Selection:-

Selection is the process of selecting a qualified job candidate for a job who can successfully
do it and add value to the organization.HR department select the employees according to the
organizations workforce need.

There are well defined, valid and consistent criteria of selecting employees. For workers
three months trial period and medical fitness is required for to be selected and for upper level
staff different tests and interviews are conducted for final selection.

4. Employee Management:-

After selection of new employee the HR department record, manage and update the data of
employees in Smart Term and Human Resource Information System(HRIS).All of the office
work in HR department is done on these two databases and some work is done on excel as
well. It also makes the file of top level posts and keep updated them until they are transferred
to dead files.

5. Job Evaluation:-

The major responsibilities of HR department include evaluating different jobs according to


their tasks, positions, ranks, salaries etc. with respect to their value to the organization. It is
the duty of HR department for listing out the general tasks or functions of every individual. It
also includes the describing the position and his immediate supervisor to whom he has to
report.

6. Employee Motivation:-

It is the duty of HR department to motivate the employees. The organization provide many
special benefits like medical facility for the employees and their family, housing facilities and
education facilities for their children’s which help them in motivating employees and
maintains loyalty to the organization.

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7. Compensation Structure:-

The HR department is responsible for compensation structures to set and maintain company
wages competitive with other businesses that are located in same area or fall in the same
industry or requires similar skills.

8. Reward Management:-

Beside salary and wages, Servis also strives to provide competitive employee benefits
packages. It provides rewards such as Health Insurance, Provident fund, Bonus, Paid leaves
etc. all these laid down in the field of reward management in SIL. These rewards are given to
employees for keeping their morale high and this will help to motivate employees for doing
work in an efficient way.

9. Training and Development:-

Learning is the continual process in Servis.HR department of service industry conducts


training and development programs regularly for getting better output. They provide training
to both new and old employees. They provide training that supports the organizations fair
practices and employee development that help them in becoming leaders for administrative
and management.

10. Implementation of Labor Laws:-

HR department ensures that organization is fulfilling the requirements of labor laws.HR office
availed with the recently updated employment laws by government. They convey these laws
to the organization and work for their implementation. For this changes can be required in
organization strategy.

Accounts Department

Accounts department is responsible for all matters relating to Finance and accounting
functions of the Commission .Accounts department is responsible for Identifying and
analyzing accounting and financial issues, recommend and implement appropriate action for
resolution. Typically, the accounting department is responsible for the following:

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1. Payroll:-

The total wages and salaries earned by every employee are calculated by accounts
department. Payroll is a critical and complex responsibility of the accounting department and
includes making sure all employees are paid accurately and timely.

2. Cash Collection & cash Payments:-

All cash received from sales and from all other sources has to be carefully identified and
recorded by accounts department. In most organizations, the treasurer may be responsible
for some of these cash flow and cash-handling functions.

3. Accounts Payable:-

In order to maintain great relationships with vendors making sure that everyone gets paid on
time is a vital role. In servis the accounting department’s role includes keeping an eye on
opportunities to save money, for example, determining if there are discounts or incentives
available for paying certain vendors more quickly then try to avail these opportunities. In
Service industry Gujrat Mr. Usman deals with accounts payable. When invoices are received
then he enter them in ORACLE system for the purpose of making their vouchers.

4. Financial Controls:-

It is the major responsibility of accounts to maintain financial controls that include


reconciliations, dividing the responsibilities and following the GAAP standards of accounting
principles, all of which are implemented with view toward compliance, fraud and theft
prevention. These arrangements help them to save from discrepancies.

5. Accounts Receivable and Revenue:-

Another key responsibility of the accounting department is to account for and track
receivables, including outstanding invoices and any required collection actions. Accounts
receivable is responsible for creating and tracking invoices. When invoices are received then
information is entered in system for generating vouchers. Mr. Hassan deals with accounts
receivables so he posted the receipt invoices of sales. The responsibility here includes

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assuring that customers pay those invoices on time, so a system of friendly reminders is
crucial.

6. Making Budgets:-

Finance/accounts, together with the Administrator, plans, directs and coordinates the
formulation, preparation, execution, review and analysis of the company’s operating budget
and operating program. The finance department works very closely with all department
heads and elected officials and gathers information to create and maintain the annual
budget.

7. Prepare Financial Statements:-

To prepare annual financial statements is important work of accounting department because


after auditing, it becomes proof in court and large numbers of decisions are affected from
this. This department is basically concerned with processes and activities of recovering,
sorting, summarizing and reporting data resulting from the whole day transactions of all the
departments.

Actually the process of this activity starts from the preparation of all the required vouchers by
different related departments. In servis industry double entry system is used for book keeping
record.

Industrial Relation Department

Industrial relation is the department which regulates the relation between the worker and the
employer. This department is found in big labor incentive organization.IR is one of the most
important and beneficiary ingredient for successful organization. Its main functions are:

1. Token number allotment:-

When workers are recruit they allotted a token number and enrolled in the nominal register
then their personal file is maintained and then it put forward in case if favor or against the
employee.

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2. Disputes handling:-

Its main function is settlement and avoidance of disputes and differences between employers
and workers. In case of any dispute, the relevant authorized officer made complaint in the
form of duplicate and send to IR for taking necessary legal actions against the complaint.

3. Settlement of workers file:-

IR department make an update the file of every worker that may easily be used in favor of
worker while apply for the following benefits:

 For issuance of social security medical card.


 As a special case of re-employment.
 For gaining help from management.

4. Provide benefits to the worker:-

IR department work for the employees to provide them different benefits. These benefits
include:

 Scholarship for the children of workers, so they got education from colleges and
universities.
 Medical leaves and treatment.
 Marriage grant for those workers whose daughters are getting married.
 Death grant for the deceased legal heirs.

5. EOBI and IR department:-

IR department is in interaction with EOBI to provide old age benefits. These benefits include:

 Old age pension and grant to those employees who are getting retired after 60 years.
 Disable pension provide to those workers who face a serious accident or disease at the
workplace and declared disable by Social Security doctor.
 Survivor pension provide to legal heirs of deceased.

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2.4.5. Detail Description of Activities Performed by Internee

Detail Description of Activities Performed by Internee in HR department:-

Majority of activities in HR department that I performed are related to HRIS database.

These include;

1. Entering miss timing of employees:-

I enter the missing in and out timing of employees due to fault of time machine. An
application is received from employee regarding this issue and then time is entered in HRIS.
For this manual work login of Mr. Muhammad Arshad is used.

2. Approving Leaves:-

I approved the leaves of both the workers and staff members. Form is filled before approving
leaves. For approving the leaves of staff and management and workers, log in of Mr.
Muhammad Arshad and Mr. Haseeb-ul-Hassan is used. Every leave form contains a serial
no and signature of related supervisor, which are used for approval process.

 Option of Leave Approval in HRIS:-

Personal management → Leaves →Leaves approval.

3. Employee Status Updating:-

The record of employees is also updated regularly. It can be updated if there is mistake in
data entered. But basically we update when worker is transferred from one department to
another, if he/she is terminated or dismissed.

 Option in HRIS:-

Personal management → Employee status.

4. Personal Data Entry:-

Personal data of employee’s id entered in databases. Any worker cannot use time machine
for attendance until their record is not uploaded in databases. Personal data includes token

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number of employee, name, father name, department of work, date of joining, Date of
confirmation, education, CNIC number and reference of employee.

 Option in HRIS:-

Personal management →Employee management.

5. Record of Dead Files:-

I record the data of those employees who left the organization. For recording data of these
employees I used MS Excel. The data includes information like the name, father name,
department, address, date of joining, date of leaving and CNIC number.

Human Resource Information System:-

HRIS is the software that is used in most HR departments to perform the activities of
employee management. Every organization have different type of HRIS according to their
need. The HRIS being used in Service industry contains a lot of functions. Following are
some functions in which I worked during my internship.

Personal Management

 Personal:-

In personal we enter the personal data of employees. This task need keen focus because it
is difficult to alter wrong entry, especially entry of date of joining. When the data is entered
we say that employee account is activated.

 Employee Status:-

By this option we update the data of employee. Employee status is updated when he is
transferred to another department or when he leaves the industry.

 Leaves:-

All types of leaves are recorded and approved in this option. When leave application is
received first leave request is filled and then it is approved by HR department.

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 Leave request form.


 Leave approval.

Attendance

 Manual attendance:-

In manual attendance record of attendance of employee is maintained manually if there is


problem in time machine.

 Attendance View:-

We can view the attendance record of particular employee by using this option.

Reports

Every kind of reports about employees and departments cab be generated. I used following
reports related options:

 Attendance:-

We can view the attendance logs, both department wise and employee wise. We can also
get daily attendance reports of present and absent employees.

 Leaves:-

The complete detail of leaves can also be generated about employees and department.

 Overtime:-

Reports of overtime can also be seen of past, both department wise and employee wise.

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Detail Description of Activities Performed by Internee in Accounts department:-

I have performed my activities in accounts department for the purpose completing some work
I used MS Excel and for completing some activities in accounts department I used ORACLE
database.

My activities in accounts department are:

1. Calculate retail tax amount:-

I was responsible to calculate to calculate retail tax amount on daily sales of service industry.
Then the copies of these sale tax invoices are attached with their summary. One copy is
sending to head office Lahore, one is for tax department, one is for supplier and one is kept
by accounts department.

 Option in ORACLE:

AR Super user →Transactions →Receipt invoices →Click on find option →Write ATT in
transaction type and then click on tab and select the last option from the list enter → Click on
incomplete → Line items →Click on tax information and press enter →Close the first
window →Tools →Calculate retail tax amount →Complete.

2. Record the import details:-

I was assigned to record the goods declaration details in import purchase register. The detail
includes the description of goods that imported from any country, quantity of goods, date,
sale tax etc. For this purpose I work on MS Excel.

3. Entering personal information of workers:-

I was assigned to enter personal information of workers in excel sheet. The information is
required for the purpose of opening employee account in bank. This information includes
employee name, father name, mother name, CNIC number, date of birth, home address and
cell number.

When the data is entered then this list is send to bank for opening account so that the
employees collect their salary from bank.

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4. Entering receipt invoices:-

I worked on system for the purpose of entering receipt invoices. We enter the invoices details
for the purpose of making receipt vouchers. When these receipts are at these are finalized by
manager of accounts department.

I also find some receipts in system that was missed from file. My supervisor told me about
the whole sale cycle of service industry. They told me about what entries are make when
sale cycle starts.

 Option in system:-

AP In charge Gujrat →(Invoices entry) invoices →Press enter →Press enter →Write details
like P.O number, invoice amount, date etc. →Press enter(After pressing enter the system
will give us a voucher number for the invoice) and then write receipt number, match the
quantity with unit price and press space button to select and then f5 →Click on lane 2
→Click on tax column and then charge tax →Calculate tax →Shift f5 →Control s →All
distribution → Control s.

5. Apply tax application on invoice payment:-

I was assigned to change the tax rates of the parties to whom we make payments. When tax
amount is charged then payment is made to the party through cheque. Mr. Sarfraz is the
person who deals with payments in accounts department.

He deals with all the types of parties to whom they pay and maintain record of these in
system.

6. Posting of payables:-

I assigned to post the payable invoices in system. Mr. Usman deals with all payables in
service industry and maintains their records in system. He told me how the purchase cycle
starts and what type of entries are done at that time and when the purchase cycle ends.

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Detail Description of Activities Performed by Internee in IR department:-

Following are the activities that I performed in IR department:

1. Posting:-

I post the data of new workers in register. It is process in which data of new workers is
recorded on the register.

First data is record by IR department manually and then this register is send to HR
department to record the information about workers in system. This information include the
name of worker, Father name, Caste, Token number, Address, Date of birth, Date of
appointment, Department, Reference of any factory person and ID card number.

2. Warning letter:-

It is the simple warning letter that issued to worker so that he did not repeat the same
behavior in future. I was assigned to make these letters.

3. Charge sheet:-

My supervisor told me how to made charge sheet against the worker for his sever
misconduct with his worker fellows or his incharge.IR department writes the charges against
the worker on charge sheet and wait for the answers from the worker .

3. Suspension letter:-
I made suspension letters of workers. If answers from workers are not justifiable then he will
be suspended for some days. During suspension period employee daily reports on the
security office.

5. Termination letter:-

If the worker is on probation period and made a serious type of misconduct then he will be
terminated from the organization. I was assigned by my supervisor to make these letters. The
termination letter contains three copies. One copy is moved to HR department, one copy is
posted to worker’s home and one is attached with the file of worker and file moved to dead
files. All of these copies are signed by IR manager.

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6. Ten days’ notice:-

If worker is absent for more than a month the IR department issue him a ten days’ notice. My
supervisor told me made this notice. One copy is posted at worker’s home and one is
attached with the file of worker.

6. Second showcase notice:-

If worker respond to the ten days’ notice then he has to face inquiry for further job but if he
did not respond then IR department issued him a second showcase notice.

7. Dismiss letter:-

If worker still not respond to second showcase notice then IR department dismissed him. Red
entry of dismiss is made in register.

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2.4.6. Summary of Learning

2.4.6.1. Skills and Qualification:-

I have gained the practical knowledge from the internship. The internship program is very
helpful for me as far as learning is concern. I have got my experience that contributed in my
learning. I learnt variety of skills and qualification. I have learnt how to behave with
employees in different situations. The interaction between employees should be friendly, so
that employee can feel comfortable while sharing his problems. And we are here to facilitate
them, not for ordering them to do as we like. During the increase in workload, I got to know
how to complete tasks. When workers are satisfied then they become loyal towards the
organization. Organization’s success depends on the devotions of workers. If you are unable
to keep your employees satisfied then it is not productive for any organization. Another skill I
have learnt is the adaption. The process of adjustment is very tough; one should have to be
flexible to induct himself into their system. It built interpersonal skills. . I have learnt how to
behave with senior managers. In human resource department and accounts department I
have learnt about the very important Database HRIS and ORACLE.I learnt how to work on
them and what is the use of these two in their department. I also learned to supportive and
cooperative with colleagues and supervisors.

2.4.6.2. Responsibilities during the Internship:-

I undertook a number of responsibilities on the base of department I have worked in. During
my internship period in HR department I was given a number of responsibilities such as
preparing and approving leaves. I was assigned to enter the missing timing of employees in
HRIS because time machine was out of order. I have record the data of those employees
who left the organization, for this purpose I used MS Excel. I was given the responsibility to
update the status of employees in Database in case of dismiss, transfer or termination.

In Accounts department I was given the responsibility to calculate retail sales tax amount. I
have record the import details in import purchase register, for this purpose I used MS Excel. I
have entered the personal data of footwear workers such as name, father name, mother
name, address, CNIC number and phone number, for this purpose I also used MS Excel. I

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was assigned to enter receipt and purchase invoices in system. I was responsible to apply
tax application on invoice payments in ERP.

2.4.6.3. Influences on My Future Career Plans:-

Internship play very important role in influencing my future career plan. This will help me in
certain ways. During my internship I got experience in field of finance because it is related to
my specialization in MBA. It will also help me in start of my career to get job in any
organization. I have also built some network while working in industry which is quite
supportive in every way. According my thinking it was very necessary to have practical
exposure in industry with my degree so that I have some practical experience of field work.
This internship gives me a chance to gain practical knowledge with my theoretical
knowledge. I also get a chance to correlate the theory of my course with the industrial
problem and their solutions. Definitely this all will make a positive and effective impact on my
future plans.

2.4.6.4. Internship activities Correlation with My classroom Knowledge:-

Internship activities are very much correlated with class room knowledge. I thought
bookish knowledge is very different from what is happening practically in different
organization but this internship changed my views. There was a practical implementation of
the knowledge that in have gained in my classroom. As far as I am doing my specialization in
finance I have spent some weeks in HR department due to some reasons so I knew what
happed in HR department, and same was going on there. Although I did not seen any
planning or training session there, but management was functioning. I realized how much
communication skills are important for professional life. The practical implementation was
observed. Such as when it comes to financial knowledge, subjects like analysis of financial
statement and financial accounting helped me to understand receipts, payments and
financial statements and to have a thorough study of invoices, vouchers and financial
statements which helped me to understand its performance over past years. Financial
accounting study enabled me to understand the work of accounts department.

Therefore, it can be concluded that classroom knowledge was quite helpful during my
internship period.

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3. Conclusion

3.1. Summary of Key Conclusions:-

Internship is very important element in our MBA course. I have learned too much from
internship. At start i don’t know the practical implication of this knowledge but i learn how to
prepare, how to present and who to implement the knowledge. Internship not only increases
our knowledge but also play a vital role for having job in any respectable organization. It is
conducted as experience of field work. It enables us to face hard time because many of us
struggle for their internship, especially when we go for finding the organization of your
interest.

The management of Service Industry Limited is very cooperative. The assigned me task and
keep me busy in learning different things. The provide guidance and support in difficulties.
On the whole, this internship was a useful experience. I have gained new knowledge, skills
and met many new people. I achieved several of my learning goals, however for some the
conditions did not permit.
3.2. General Observations about the Sector:-

As an internee draws the following about Service:


 They are facilitating their employees very well. They have already done a lot of for their
workers.
 They utilizing their workers efficiently to cut down their cost.
 There are very strict rules of company for their employees.
 HR department is doing very well. They have been able to attract pool of skilled labor and
retaining it.
 The security system is very alert and strong in service industry.
 Factory’s infrastructure is not attractive, especially the offices and building of the
company.
 There is a lot of work for the staff to do. They don’t have relaxation time, even able to
complete their daily activities.

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3.3. SWOT analysis of organization:-


It is very important for any organization to know
about its strengths, weaknesses, opportunities
and threats to compete in the industry. So, by
the help of environmental analysis and
organizational structure I can find out the
opportunities and threats and strengths and
weaknesses.
Strengths:
 Cost Advantage:
Lower costs are leads to higher profits for service. A low cost leader can undercut the
rivals on price.
Only few companies has cost department and service is one of them who has
independent cost department. Cost department control over per unit with all aspects such
as material cost, labor cost, rates controlled by bill verification.
 Latest technology:
They have advanced technology and modern equipment that helped them in producing
goods.
 Employee benefits and reward:
SIL is providing health, pension and transport facilities to its employees.
 Efficient Procurement department:
Procurement department is working very efficiently in transferring the inputs into outputs.
 Customer loyalty:
Customers are loyal to Service Industry. Instead of targeting all customers they only need
to target new customers in order to grow their business.
 Brand Name:
A strong brand is major strength of service. This gives the ability to charge higher prices
for their products because customers place additional value in the brand.
 Business portfolio: Service is producing variety of products that reduces the risk of
company.
 Having company's own outlets all over the country.

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 Heavy export of service industry.


 Having good relations with its suppliers.
 Company has vast experience in shoe manufacturing.
Weaknesses:-
 Lack of new products:
SIL is not introducing new products these days.
 Less promotional activities:
The majority of people are not well aware about the products of SIL. It is due to their very
low services of promotional activity.
 Centralized decision making:
The decisions are made by the upper management which is weakness of the SIL,
because authority is not delegated to branch level. Manager cannot take initiative
regarding different decisions. They cannot work freely.
 Resistance to change:
There is very frequent change in design, technology, process and marketing due to
branded footwear availability in the market. The service is not well known as making
fashion oriented brand.

Opportunities:

 Innovation:
Great innovation can help service to produce unique products and services that meet
customer’s needs.
 New technology:
New technology helps them to better meet their customer needs with new and improved
products. Technology also builds competitive barriers against rivals.
 Low price:
Company can introduce low price product in the market because high percentage of
population belongs to lower class.
 Replacement of infrastructure:
SIL has to replace the old infrastructure with new one for best working environment.
Provide better online shopping facilities.

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Threats:

 Political risk:
Politics can increase risk factors because governments can quickly change business
rules that negatively effect on Service.
 Government regulations:
Changes to government rules and regulations pay negative impact on the industry.
 Substitute products:
The availability of substitute products hurts service industry’s ability to raise prices
because customers can easily switch to another product.
 Competition:
Competition is going to increase because of setting up modern units elsewhere and
entrance of multinational companies in local market.
 Political instability:
Pakistan is a country that politically is not stable. There is not stable government. This
has great impact on industrialists and investors. Service industry has threat due to
political instability because in instable government there is rapid change in laws, rules and
regulations.
 Economic threat:
The service industries have to face economic threats. The first economic threat is high
prices of electricity. Another threat is rate of inflation, which causes rise in prices of things.
In recent years, oil prices have gone up due to which it has increased transportation cost
which increases the cost of production.

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4. Recommendations:-
After a thorough analysis of financial performance and operations of Service Industry Limited
Gujrat during internship, I want to draw following suggestions and recommendations for the
industry.
 Footwear industry is highly fashioned industry so company should bring innovations in its
products according to new trends and fashions.
 The advertisement should be at large scale of Service products, on the famous
channels to greed the people of target market.
 The company must reduce its operating expenses in order to compete in the market on
price basis operating expenses are controllable factor.
 Company must pay a continuous attention to quality of products so that competitor may
not surpass it.
 The company should increase their exports to all over the world through participate in
expo festivals.
 The HR department should arrange programs for motivation of employees and the
selection of employees should be on merit not on references.
 Prices of Service products are high because now in the market there are China shoes
and other competitor companies, so they need to reduce their prices.
 They should have to decentralize the management decision. That will build trust on low
level managers and they will be confident and work with devotion.
 The Service shoes should start to sale its product through online, which can improve its
sale as well as its profits. It is also a good image for the customers that the company is
involved in online business and easy to access. Through this way company can also
compete at good scale with its competitors.
 Different training courses should be arranged for the uplifting and improving quality of
work for employees.
 There should be a monthly magazine of Service products in which the company can give
awareness about the good features of the products of company and new features and
designs.

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References:-
 www.servis.com. Retrieved July 25, 2013, from http://www.servis.com/page/the_history
 www.servis.com. Retrieved July 27, 2013, from http://www.servis.com/page/the_brand
 www.servis.com. Retrieved Aug 3, 2013, from http://www.servis.com/page/financial_results
 www.servis.com. Retrieved Aug 11, 2013, from http://www.servis.com/contact
 www.servis.com. Retrieved Aug 17, 2013, from http://www.servis.com/page/ssc
 www.servis.com. Retrieved Aug 22, 2013, from http://www.servis.com/page/csr
 Service industries limited (2012). 2012 servis annual report.
Retrieved from http://servis.com/bbcontent
Repository/20121114140799/servisannualreport012.pdf

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