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INTERNSHIP REPORT

ON
SITARA TEXTILE INDUSTRIES (Pvt.) LIMITED
FAISALABAD
Submitted by,
AWAIS MAHMOOD BUTT
MBA (HRM)
 
 
 
 
Virtual University of Pakistan, Defence Road, Off Raiwind Road, Lahore.
 
 

 
 
DEDECATION
 
 
The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in ever
y sphere of life. My affectionate parents who taught me the first word of speak
and supported me morally and financially throughout my studies.
 
 
 
 
 
ACKNOWLEDGEMENT
“In the name of Allah, the most merciful and beneficent”
I would like to thank Almighty Allah who made me able to complete this internshi
p report by utilizing my skills and knowledge. I am also thankful for giving me
spirit of patience, consistency and courage during my internship.
I am also grateful to the Virtual University of Pakistan, especially regional of
fice that provided me a chance to explore my skills, qualities, abilities and po
tentials through internship program. I am also thankful to my teachers for givin
g me chance to show the best of my abilities during the period of my internship.
At Sitara Textile Industries limited, I would like to thank Mr. Saleem Chaudry,
GM (HR & A) who provided me full opportunity to start internship and accumulate
first hand comprehensive information’ during my internship. I am also obliged to d
ifferent persons like Mr. Zafar Iqbal, Mr.Tariq Mehmood and Mr. Ghulam Mustafa w
ho provided ever information I needed during the course of my internship.
Last but not the least, I am also thankful to my younger brother and best friend
of mine Mr. Umar Khatab who’s management experience and tips regarding internship
are always helpful for me. Without his encouragement and guidance it might not
be possible for me to complete my MBA so successfully and smoothly.
I am responsible for errors and mistakes presented in the report and a positive
and constructive criticism will always be greeted warmth.
 
 
AWAIS MAHMOOD BUTT
List of Contents
Title Page 1
Acknowledgement 2
List of Contents 3
Objective of Studying Sitara Textile 6
List of Tables and Illustrations 5
Introduction 7
Establishment and Growth 9
Overview of Sitara Textile 10
Brief History 10
Nature of Organization 10
Business Volume 11
Profile of Employees 20
Product Line 22
Organizational Structure 24
Main Offices 24
HRM Operations 25
Structure of HRM 27
Employees Working in HRM Dept. 27
Functions of HRM 28
Critical Analyses 30
Shortfalls of HRM 34
Conclusions 37
Recommendations 38
References 40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
List of Tables And Illustrations
Page NOBalance Sheet 10
Organ gram
 
1. Objective of studying the organization:
My objective of studying the Sitara Textile Industries Limited is to know about
the following things:
1. How management is analyzing work and planning for people?
2. What factors are most important to consider in developing a recruitment polic
y?
3. What screening and selection methods are available, and which ones are most a
ccurate?
4. To know how management respond to a union organizing campaign?
UY2. Introduction:
The name “SITARA” emerged on the horizon of Pakistan soon after its inception in the
year 1947.the start was modest with limited space to work and meager resources
to cater, but devotion and dedication blended with untiring honest efforts soon
flourished to bear the fruits.
Sitara meaning “A STAR” really proved to be the symbol of bright future for the comp
any and now Sitara is the most successful group in Pakistan. Sitara Textile Indu
stries gave birth to the following units and become a “SITARA GROUP OF INDUSTRIES “
1- Sitara Textile industries Ltd
2- Sitara Chemical Industries Ltd.
3- Sitara Spinning Mills Ltd.
4- Sitara Energy Ltd.
5- Sitara Fabrics Ltd
6- Sitara Enterprises (Pvt) Ltd.
7- Sitara Hamza (Pvt.) Ltd.
8- Yasir Spinning Mills
9- Sitara Peroxide Ltd.
10- Aziz Fatima Trust Hospital
11- Ghafoor Bashir Children Hospital
12- Aziz Fatima Girls High School
 
 
Sitara Textile Industries Limited
Sitara Textile is one of the largest manufacturer and government accredited expo
rter of textile in Pakistan having assets of worth more than US$ 4.00 Billions,
bleached, Printed and dyed fabrics. The total area of the subjected premises con
sists of 102 Kinal 17 Marla’s (12 Ackers 7 Canal) (553844 sq. ft.) with covered ar
ea approximately 332,718 Sq. ft.
 
 
Establishment and Growth
Sitara Textile established in late 50s with the name of “Sitara Calico Printing” at
Maqbool road Faisalabad. Initially the printing was carried out mostly by orthod
ox method but soon after its balancing modernization and expansion the company w
as renamed as “Sitara Textile Industries (Pvt.) Ltd.”in 1969. And it has been regist
ered in Security and Exchange Commission in 1996 At present its posses most mode
rn processing machinery form Switzerland, Germany and England.
Sitara captures a wide market and its products are appreciably accepted througho
ut the Pakistan most popular SAPNA lawn and Mughal-e-Azam Lattha are its major p
roducts, contributing towards the national economy, export figures range from 10
to 13 million us dollars per day.
Sitara Textile Industries are proud to be able to make a major contribution to t
he general economy well being of the Pakistani government and its people by earn
ing valuable foreign exchange and through their job creation and training scheme
s.
3. Overview of the organization:
 
3.1 Brief History
The name of SITARA emerged on the horizon of Pakistan’s textile industry in 1959,A
modest limited financial and other resources available, soon flourished to bear
full owing to the determination and dedication of its workers, An honest approa
ch in dealing , with customers, vendors and related agencies, took the group a s
tep ahead and is a vital contributing to its’ success today. At the moment Sitara
Textile is the leading industrial group of Pakistan, owing assets more than US$
4 billion. The Sitara Group of Industries deals in Textile, Chemicals, Energy, H
ealth and Education sectors.
3.2 Nature of the Organization
Sitara Textile Industries Limited a fabric woven with tender care and dyed in th
e brilliant shades of nature adds elegance and magnificence to this world.
Sitara Textile is a manufacturer of such fabulous fabrics: fabrics that speaks o
f unparallel quality and unmatched comfort. Sitara Textile specializes in produc
ing high class fabric product made of superior quality materials and possesses s
tate production facilities in made ups and fabrics for various consumer needs. T
he company makes use of the latest technical equipment to make sure that each pr
oduct is original in style and shows exquisite craftsmanship. Sitara Textile is
a company believes in originality as character and quality as foundation. The en
trepreneurial spirit of the company assiduously seeks constant development, stea
dy progress and outstanding performance.
3.3 Business Volume
These balance sheets will show us the business volume of Sitara Textile for the
last five years.
3.3.1 Balance Sheets
 
 
SITARA TEXTILE INDUSTRIES LIMITED
BALANCE SHEET
AS AT JUNE 30, 2002
2002 2001
Rupees Rupees
Share Capital and Reserve
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
issued, subscribed and
paid up capital 60,000,000 60,000,000
unappropriated profit 63,332,927 33,115,685
___________________________________
123,332,927 93,115,685
Non-current Liabilities
Long term loans 111,401,640 146,241,261
Liabilities against assets subject
To finance lease 67,611,805 1,947,384
Deferred liability
Staff retirement gratuity 8,392,744 7,421,504
Current Liabilities
Short term bank borrowings 335,000,000 325,700,000
Current portion of long
Term liabilities 13,167,572 16,171,032
Creditors, accrued and other
Liabilities 204,367,961 195,961,126
Provision for taxation
Income tax - -
______________________________________
552,535,533 537,832,158
Contingencies and commitments
863,274,649 786,557,992
Non-Current Assets
Fixed assets 269,527,667 191,450,794
Long term deposits 10,524,468 5,538,999
Current Assets
Stores, spares and loose tools 23,807,965 38,592,084
Stock in trade 273,919,232 231,419,567
Trade debts 117,499,627 76,364,550
Short term investments 27,534,225 30,458,119
Advances, deposits and prepayments 597,604 631,718
Other receivables 117,726,763 175,058,625
Cash and bank balances 22,137,098 36,803,536
_______________________________________
538,222,514 589,328,199
 
 
________________________________________
863,274,649 786,557,992
________________________________________
 
 
 
SITARA TEXTILE INDUSTRIES LIMITED
BALANCE SHEET
AS AT JUNE 30, 2003
2003 2002
Rupees Rupees
Share Capital and Reserve
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
issued, subscribed and
paid up capital 60,000,000 60,000,000
unappropriated profit 60,406,455 63,332,927
___________________________________
120,406,455 123,332,927
Non-current Liabilities
Long term loans 106,401,640 111,401,640
Liabilities against assets subject
To finance lease 60,189,181 67,611,805
Deferred liability
Staff retirement gratuity 8,792,773 8,392,744
Current Liabilities
Short term bank borrowings 501,385,886 335,000,000
Current portion of long
Term liabilities 13,929,807 13,167,572
Creditors, accrued and other
Liabilities 221,627,883 204,367,961
Provision for taxation
Income tax - -
______________________________________
741,976,776 552,535,533
Contingencies and commitments
______________________________________
1,037,766,825 863,274,649
______________________________________
Non-Current Assets
Fixed assets 239,780,372 250,027,667
Long term deposits 43,483,987 19,500,000
_______________________________________
283,264,359 269,527,667
Current Assets
Stores, spares and loose tools 24,747,027 23,807,965
Stock in trade 275,743,980 273,919,232
Trade debts 246,140,416 117,499,627
Short term investments 23,463,972 27,534,225
Advances, deposits and prepayments 1,863,530 596,604
Other receivables 105,795,544 117,726,763
Cash and bank balances 72,197,865 22,137,098
_______________________________________
749,952,334 583,222,514
 
 
________________________________________
1,037,766,825 863,274,649
________________________________________
 
 
SITARA TEXTILE INDUSTRIES LIMITED
BALANCE SHEET
AS AT JUNE 30, 2004
2004 2003
Rupees Rupees
Share Capital and Reserve
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
issued, subscribed and
paid up capital 60,000,000 60,000,000
unappropriated profit 53,903,550 60,406,455
___________________________________
113,903,550 120,406,455
Non-current Liabilities
Long term loans 249,170,418 106,401,640
Liabilities against assets subject
To finance lease 45,154,147 60,189,181
Deferred liability
Staff retirement gratuity 9,414,307 8,792,773
Current Liabilities
Short term bank borrowings 700,844,166 501,385,886
Current portion of long
Term liabilities 30,644,468 13,929,807
Creditors, accrued and other
Liabilities 236,041,801 221,627,833
Provision for taxation
Income tax 2,051,356 -
______________________________________
969,581,791 741,976,776
Contingencies and commitments
______________________________________
1,387,224,213 1,037,766,825
______________________________________
Non-Current Assets
Fixed assets 237,355,400 239,780,372
Long term deposits 170,021,132 43,483,987
_______________________________________
407,376,532 283,264,359
Current Assets
Stores, spares and loose tools 57,413,428 24,747,027
Stock in trade 389,829,816 275,743,980
Trade debts 313,472,216 246,140,416
Short term investments 18,368,031 23,463,972
Advances, deposits and prepayments 2,427,305 1,863,530
Other receivables 146,874,954 105,795,544
Cash and bank balances 48,561,388 72,197,865
_______________________________________
976,947,138 749,952,334
 
 
________________________________________
1,387,224,213 1,037,766,825
________________________________________
 
 
 
 
 
 
SITARA TEXTILE INDUSTRIES LIMITED
BALANCE SHEET
AS AT JUNE 30, 2005
2005 2004
Rupees Rupees
Share Capital and Reserve
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
issued, subscribed and
paid up capital 60,000,000 60,000,000
unappropriated profit 67,184,820 53,903,550
___________________________________
127,184,820 113,903,550
Non-current Liabilities
Long term loans 362,098,587 249,170,418
Liabilities against assets subject
To finance lease 109,771,594 45,154,147
Deferred liability
Staff retirement gratuity 9,962,141 9,414,307
Current Liabilities
Short term bank borrowings 787,135,412 700,844,166
Current portion of long
Term liabilities 52,847,898 30,644,468
Creditors, accrued and other
Liabilities 233,544,309 236,041,801
Provision for taxation
Income tax - 2,051,356
______________________________________
1,073,627,619 969,581,791
Contingencies and commitments
______________________________________
1,682,644,761 1,387,224,213
______________________________________
Non-Current Assets
Fixed assets 453,080,113 237,355,400
Long term deposits 125,102,055 170,021,132
_______________________________________
578,182,168 407,376,532
Current Assets
Stores, spares and loose tools 130,512,457 57,423,428
Stock in trade 538,613,920 389,829,816
Trade debts 108,295,886 312,031,466
Short term investments 61,440,750 1,440,750
Advances, deposits and prepayments 136,238,582 20,795,336
Other receivables 114,287,974 146,874,954
Cash and bank balances 12,522,481 48,561,388
_______________________________________
1,101,912,050 976,947,138
 
 
________________________________________
1,682,644,761 1,387,224,213
________________________________________
 
SITARA TEXTILE INDUSTRIES LIMITED
BALANCE SHEET
AS AT JUNE 30, 2006
2006 2005
Rupees Rupees
Share Capital and Reserve
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
issued, subscribed and
paid up capital 60,000,000 60,000,000
unappropriated profit 105,466,103 67,184,820
___________________________________
165,466,103 127,184,820
Non-current Liabilities
Long term loans 329,868,755 362,098,587
Liabilities against assets subject
To finance lease 115,946,982 109,771,594
Deferred liability
Staff retirement gratuity 10,823,609 9,962,141
_____________________________________
456,639,346 481,832,322
Current Liabilities
Short term bank borrowings 950,182,695 787,135,412
Current portion of long
Term liabilities 89,838,462 52,847,898
Creditors, accrued and other
Liabilities 244,989,749 233,644,309
Provision for taxation
Income tax 22,846,641 -
______________________________________
1,307,857,547 1,073,627,619
Contingencies and commitments
______________________________________
1,929,962,996 1,682,644,761
______________________________________
Non-Current Assets
Fixed assets 597,278,955 578,182,168
Long term deposits 5,554,985 2,550,543
_______________________________________
602,833,940 580,732,711
Current Assets
Stores, spares and loose tools 146,866,290 124,260,241
Stock in trade 709,655,037 544,866,136
Trade debts 165,148,491 108,295,886
Short term investments 1,440,750 61,440,750
Advances, deposits and prepayments 198,593,943 129,885,968
Other receivables 81,033,815 120,640,588
Cash and bank balances 24,390,730 12,522,481
_______________________________________
1,327,129,056 1,101,912,050
 
 
________________________________________
1,929,962,996 1,682,644,761
________________________________________
 
3.3.2 Profile of Employees
The success of an organization is dependent on what type of management an organi
zation is dependent on, what type of management an organization has. Sitara Text
ile industry is a well-reputed organization. They have very effective and effici
ent management. There are five major departments and over 1750 employees working
including top and middle level.
Departments are:
1- Administration
2- Processing
3- Finance
4- Export
5- Marketing (local)
All the departments have general mangers as their heads except marketing (local)
. In top level hierarchy GMs works in coordination with the board of director to
meet with the long term and short term goals. These goals are set and checked a
t the end of each financial year.
Top Level Hierarchy
1. Chief Executive Officer
2. Director Finance
3. Director Export
4. Director Processing
5. GM Admin
6. GM Local Marketing
(Organogram is attached herewith)
 
3.3.3 Profile of Processing Employees
Processing department is that department where the product is actually come to t
he condition of selling. Raw material is changed to finished cloth by a systemat
ic way. This systematic way consists of 8 more sub departments that play their i
mportant role to convert iron to gold. These departments are:
Grey room
Bleaching Department
Dyeing Department
Engraving Department
Printing Department
Finishing Department
Packing Department
Laboratory
Engineering Staff
3.4 Product Line
Following are the products of Sitara Textile Industries.
Sitara Sapna Lawn
Sitara Sapna Lawn ( white and dyed)
Sitara Sapna Latha ( white and dyed)
Sitara Sapna Cambric ( white and dyed)
Sitara Mughal-e-Azam Latha
Sitara Mughal-e-Azam Lawn
Sitara Mughal-e-Azam Cambric
Sitara Mughal-e-Azam (Embroidery)
Sitara Mughal-e-Azam (Collection)
Sitara Universal Cambric (white and dyed)
Sitara King To U KT ( white and dyed)
Sitara Comandar Latha ( white and dyed)
Sitara Supreme Lawn
Sitara Supreme Cotton Cambric
Sitara Cotton Club Cambric (white and dyed)
Sitara Supreme Lawn (white and dyed)
Sitara Quilt Print
Sitara Medlean Print
Sitara Swiss Gold
 
4. Organizational Structure:
 
4.1 Main Offices
Following are the list of main offices of Sitara Textile:
Sitara Textile Industries Limited, 6-KM, Sargodha Road, Faisalabad.
Sitara Sales Point, Ajman, Dubai
Sitara Sales Office, Islamabad
Sitara Sales Office, Karachi
4.2 HRM Operations
At a general level, it is important to analyze training needs against the backdr
op of organizational objectives and strategies. Unless you do this, you may wast
e time and money on training programs that do not advance the cause of the compa
ny People may be trained in skills they already possess the training budget may
be squandered on rest and recuperation sessions, where employees are entertained
but learn little in the way required job skills or job knowledge, or the budget
may be spent on glittering hardware that meets the training director’s needs but
not the organization’s.
It is also essential to analyze the organization’s external environment an interna
l climate. Trends in the strategic priorities of a business, judicial decisions,
civil rights laws, union activity, productivity, accidents, turnover, absenteei
sm, and on the job employee behavior will provide relevant information at this l
evel.
However, assessing the needs for training does not end here. It is important to
analyze needs regularly and at all three levels in order to evaluate the results
of training and to assess what training is needed in the future.
At the organizational level, senior managers who set the organization’s goals should
analyze needs.
At the operations level, the managers who specify how the organization’s goals are g
oing to be achieved should analyze needs.
At the individual level, the managers and workers who do the work to achieve tho
se goals should analyze needs, keeping in mind that performance is a function bo
th of ability and motivation.
4.2.1 Human Resource Planning
Human resource planning is all about measuring the organization need to identify
the numbers of employees and skills required to do those jobs. Further, an unde
rstanding of available competencies is necessary to allow the organization to pl
an for the changes to new jobs required by corporate goals.
At sitara, major changes according to economic and social environments are requi
red purchasing new and additional office equipment to enhance efficiency e.g., c
omputer hardware or software, coping with the recall of a defective product and
dealing with the need for a new design e.g. new automatic rotary machine.
This suggests several specific, interrelated activities that together constitute
an human resource planning system.
They include:
A talent inventory to assess current human resources and to analyze how they are c
urrently being used.
A human resource forecast to predict future HR requirements.
Action plans to enlarge the pool of people qualified to fill the projected vacanci
es through such actions as recruitment, selection, training, placement, transfer
, promotion, development and compensation.
Control and evaluation to provide feedback on the overall effectiveness of the hum
an resource planning system by monitoring of HR objective.
.
5. Structure of the HRM Department:
 
5.1 Number of Employees working in HRM Department
Now I’ll discuss the personnel management of Sitara Textile Industries Limited und
er various steps of Human Resources Management Sitara Textile also knows this fa
ct and has personnel department right at the entrance of main gate of mill. Pers
onnel Department of Sitara Textile can be critically analyzed on the basis of va
rious steps of human resources management process.
First I would like to describe the ware bouts of department. Department is situa
ted in an old building which was constructed at the time of establishment of Sit
ara Textile and department was named as labor department. Recently three or four
years ago name of department was changed to personnel department. There are onl
y 5 personnel who actually handle the department’s affairs and about 1500 employee
s are working. There is great work that is to be done by 5 persons and they feel
burden on themselves.
6. Functions of the HRM Department:
 
6.1 Major Functions
Every organization whether it is a multinational conglomerates a small business,
a religious institution or a government agency depends on people. Appropriate c
andidates for each job from chairman of the board to night shift janitor must be
located either inside or outside the organization and they must be convinced by
pay benefits and working conditions to take and keep the job. They must also be
trained and motivated. Handling these functions is part of human resources mana
gement’s job.
they feel burden on themselves.. There are six steps.
1. Human resources planning
2. Staffing
3. Training & Development
4. Compensation Management
5. Employee Evaluation
6. Employee Movement and Replacement
6.2 Supports to Other Departments
Through job rotation policies and by extensive interaction with managers in all
other functional areas. Unless these executives are perceived as equals by their
corporate peers, their ability to make significant contributions to the firm wi
ll be diminished.
Require the senior HR executive to report directly to the CEO. At present this o
ccurs in about 70 percent of companies nationwide. Consider whether any corporat
e resource is more important than its people. Ensure that the top HR officer is
a key player in the development and implementation of business plans—providing ear
ly warning regarding their acceptance and serving as the CEO’s window on the organ
ization and as a sounding board.
Representatives from HR and line managers from the business unit generate key bu
siness strategies for the coming year. To do so, they identify major external an
d internal factors that may have an impact on the future of the business, togeth
er with future customer requirements. The result? A business unit annual plan th
at outlines
Major driving forces in the business unit.
Major business initiatives in the business unit.
Primary directions.
Major priorities for key executives of the business unit.
Managers who have used the strategic blueprint process emphasize that its single
greatest benefit is this: if forces HR managers to concentrate solely an critic
al, value adding activities. Such an approach is sorely needed, as a recent Amer
ican Management survey of 1500 HR managers found. When asked how well HR strateg
y is linked to business results, 6 out of 10 respondents said it was either not
effective or just somewhat effective. Only 3 percent characterized the linkage a
s “world class.”
 
 
7. Critical Analyses:
 
7.1 Requirement Analysis
Job analysis also provides the basis for developing job specifications. Job spec
ifications are a statement of the human qualifications required to perform the j
ob. Among the qualifications which are often included in job specifications are
the following.
Educational standards which may spell out, for example, degrees attained, such a
s a B.S. in engineering.
Experience requirements, such as two years of general clerical experience for th
e position. This job requires directing the work of from two to ten clerical emp
loyee, and therefore would normally require some prior experience in actually pe
rforming clerical duties.
Skills requirements, such as typing 80 words per minute, or being able to take d
ictation by an executive etc.
Requirement analysis has performed thoroughly at Sitara Textile for the purpose
of job analysis by HR department.
7.2 Data Gathering
There are four basic technique generally used for gathering about different jobs
.
Interviews in some cases, job analysts may interview the employee who is performin
g the job, the supervisor, or both. This technique may be time consuming, and th
e danger exists that employees may exaggerate the importance of their jobs. At S
itara Textile interviews are conducted for certain types of investigations in ca
ses of breakage of rules and regulations. Interviews are also conducted for sear
ch of a new candidate but these interviews are just mere formality rather than h
aving professional approach.
Observation A second approach to information gathering in job analysis is having t
he analyst actually observe the individuals performing a job and record observat
ions while doing so. In some instances this method is very useful, but under cer
tain conditions it becomes more difficult if not impossible. At Sitara Textile t
his technique is implemented in some cases, observations have done for performan
ce judgment and competency of work force.
Questionnaires Probably the least costly method of collecting job analysis data is
by using questionnaires. Well designed questionnaires have been claimed to be “th
e most efficient way to collect a wide array of job data and information in a sh
ort time. However, there is the danger that a responder will not complete the qu
estionnaires, complete it inaccurately, or take an excessively long time to retu
rn it Sitara Textile usually does not use this sort of technique to collect the
data.
Diaries or Logs A fourth approach is to utilize diaries or logs in which employees
record their daily activities and tasks. In addition, those activities performe
d at infrequent intervals must also be noted. Because of the difficulties connec
ted with this procedure, portable tape recorders may be utilized to assist in ma
intaining a record of such activities.
HRM department has not any systematic procedure for using the diaries or logs fo
r the purpose of data gathering.
 
7.3 System Design
When choosing a system, always remember that the selection is not expected to la
st forever. That thought should provide a glimmer of hope and some optimism, too
. The selection is important and should be taken with great care. At the same ti
me, you should acknowledge that if something better comes along or if circumstan
ces change, you might have made different choice.
Develop detailed project plan
Develop user groups
Purchase hardware
Develop independent focused computer applications.
Implement independent applications as ready
Modify in house forms
Modify/customize initial systems
Establish procedure
Convert data Train HRIS staff
During my internship at Sitara Textile, I found that HR department uses to devel
op various user groups for example there is separate software running for the wo
rk force of processing department and similarly for stitching department. Oracle
software’s are in use for the employee’s pay roll system and pay breakup, all the p
rogramming has been done by IT department. In pay roll system there is a employe
e form where the data has recorded and pay break up system is also the part of t
hese pay roll forms. There exists auto generation system at Sitara Textile, empl
oyees attendance is being checked through hand scanning recently changed from ol
d procedure of card scanning.
7.4 Implementation
Following are the points which theoretically I read during course of my study
Implement HR core
Train other HR users
Make system available to HR functional specialists
Refine HR core
Establish mainframe micro link
Conduct field analysis
Develop procedures for distributed processing
Prepare technical documentation
Develop/work on other modules
Test system and user acceptance
Implement additional modules
Maintain/enhance
 
 
 
8.Short-falls/Weaknesses of the HRM Department:
8.1 Planning
At Sitara Textile I think very small importance is given to personnel as far as
planning is concerned. Upper level management like CEO and Director give low att
ention to this department. Personal Department does not search for and does not
know whether there is need of new employee at same job or not. They only know wh
o is going out and there is a vacancy at the place of out going employee. I have
examples for such employees who are doing work of two or three men. There shoul
d be better planning for that in order to achieve organizational goal. If the go
al is to minimize the expenses it is not proper way to control and is not legall
y and ethical acceptable.
8.2 Recruitment
At Sitara Textile recruitment is done internally as well externally. Recruiting
is to attract qualified people to apply for positions with an organization. Sita
ra Textile do not advertise their job in newspaper but let the people be informe
d by existing employees.
Most of new employees are hired on reference basis. There are various authoritie
s to hire the people for various positions. If position of job is that employee
would be paid Rs.4,000/- monthly, personnel manager has authority to hire this e
mployee. The finance manager hires employees having salaries below Rs.7, 000/- m
onthly. And job of value higher than Rs. 7,000/- per month is up to CEO or Direc
tor.
8.3 Training & Development
At Sitara Textile every new employee trains himself at his own because training
is not done or given properly by the organization. Employee’s new colleagues teach
him manners of his job. Sitara Textile does appoint trainee employees who are t
rained by the existing employees and these trainees are sometime hired for actua
l jobs. These hired trainees are beneficial for Sitara Textile because they are
already trained and understand their jobs. If there is new employee hired who wa
s not trainee at Sitara Textile suffers because of that Sitara Textile do not ha
ve proper training program.
8.4 Compensation Plans
As Sitara Textile is an industry of conservative type therefore compensation and
reward system is not very much impressive. Compensation level of Sitara Textile
is low that is way qualified and talented people hesitating to join Sitara Text
ile. There are low basic pays offered. One good thing is that including allowanc
es, pays become double of the basic. But gross pay remains at the low level as c
ompared to the other industries. All the textile industries in Faisalabad have l
ow level of compensation except few, so as Sitara Textile. Various allowances ar
e given to employees like medical allowances, attendance allowances and etc. Att
endance allowances are only for those employees who are taking less than Rs. 5,0
00/- gross.
As compensation level is low therefore employees are not very much motivated. Mo
tivation level and morale of employees are low which affects the periodicity of
the organization. It is fact that Sitara Textile is well reputed organization an
d covering productivity requirement but if morale and motivation levels are brou
ght high the productivity could increase. Anyhow Pakistani work force are scared
and compelled to take whatever any body gives because of unemployment. Some thi
nk is better than nothing.
8.5 Evaluation
Sitara Textile performance of the employees is evaluated on the basis of what ha
s been expected from them. The upper level management evaluates performance. Upp
er level management sees how an employee is performing on his assigned position.
It is done through observing and comparing the productivity of the organization
with the expected productivity. The results of evaluation are used in movement
of employee inside the organization or outside the organization.
8.6 Movement and Replacement
At Sitara Textile movement is of three types one is promotion 2nd is voluntary s
everance and last is termination. In case of good performance promotion or incre
ment is given to the employee and is case of mistake or misbehave only one way t
hat is termination. Sitara Textile do not care employee turnover or things like
that, they just replace that employee. In this way movement of employees takes p
lace at Sitara Textile.
This is all about the short-falls and weaknesses of HRM department of Sitara Tex
tile. Despite the fact that department and personnel management is not very good
Sitara Textile has great productivity capacity. Emergence of all other industri
es in Sitara group of industries is example of excellent of Sitara Textile.
9. Conclusions:
 
All the sub departments of processing department like bleaching, dyeing, printing
and finishing are working under laboratory instructions so laboratory is playing
role of executive in quality control.
All the schedules of bleaching, dyeing printing and finishing are prepared by the
laboratory instead of related management or HR department.
There is lack of human resource planning, lack of recruiting activities lack of jo
b analysis, compensation and reward system is not very much attractive and emplo
yees are not well motivated in Sitara Textile.
One good thing of this department is that the department let the employees follow
the rules and regulations set by the organization strictly. Attendance is strict
ly checked and leaves as well. So there are good and bad both present in the hum
an resource department of Sitara Textile.
HRM department is not established and not considered to be very much important. Lo
w attention is paid to this department by upper level management.
There is lack of human resources planning, lack of recruiting activities and lack
of job analysis.
Compensation and reward system is not very much attractive and employees are not w
ell motivated in Sitara Textile.
10. Recommendations for improvement:
Organizations big or small profit or unprofitable have problems and there are al
ways chances of improvements. This is also the condition for Sitara Textile. As
problems and difficulties have been identified, now here are some suggestions th
at may help the organization to improve. This is also the condition for Sitara T
extile. As problems and difficulties have been identified, now here are some sug
gestions that may help the organization to improve.
In processing department there is a need of skilled workers. There are certain dep
artments of processing in which employees have been working since long but their
efficiency is not improved and unsatisfactory results come out sometimes. The s
killed labor will not only improve the efficiency but also will improve effectiv
eness. There should be chances given to skilled workers to enter the organizatio
n.
There should be female artists and designers in design department as females have
naturally more esthetical qualities than males. They will really improve the qua
lity of designs and will introduce more innovative design.
Expanding product lines that will give more variety to people of country could ext
end local marketing and ultimately sales would be increased. There should be mor
e staff in local marketing department to enhance the sales figure and to capture
wide area of local market.
There is need of better working condition in personnel department. Employees of th
is department are working in very poor condition, chair are broken, air conditio
ning facilities are not properly in some department like HRM department. That is
why morale of employees working in department is low and they are not motivated
for doing jobs. This area should carefully be examined and solved.
There is need to increase the staff in this department only three or four persons
are working with all the affairs regarding let the employees abide by the rules
and regulations, recruiting, selecting and other activities. This area should ca
refully be handled to attract skilled employees and ultimately to enhance effici
ency and effectiveness.
Job analysis should be done to know what are the jobs needed in the organization.
I know some persons who are doing the job of two or three persons.
Compensation and reward system should be brought at higher level in order to let t
he employees be motivated and happy.
There should be more fringe benefits for the employees taking into consideration t
here devotion skill and experience. This higher level would make the employees m
ore efficient and effective.
There should be little compensation for trainees as well as they can fulfill their
day to day traveling and food expenses. By doing this trainees will show more i
nterest, more devotion, more potentials and will work with full mental and physi
cal efforts.
The first aid and other medical facilities should be provided to the employees wit
h in the mill area. There is continuous working in the mill and every time there
are chances of any accident or unpleasant incident. So in order to handle this
type of situation the first aid dispensary should be there in the mill area.
REFERENCES AND SOURCES OF STIL:
I collect the all information about the Sitara Textile Industries Limited (STIL)
for making internship report. The references & Source of information are as fel
lows:
Mr. Muhammad Awais Director Export Marketing
Mr. Muhammad Hafeez G.M Banking & Finance
Mr. Muhammad Razzaq Director Finance
Mr. Muhammad Yaseen Senior Export Manager
Mr. Ashfaq Ahmad Senior Export Manager
Mr. Shahid Mahmood Deputy Export Manager
Mr. Abul-Qayyum Deputy Export Manager
Mr. Waseem Ahmad Assistant Export Manager
Mr. Muhammad Saleem Ch. HR& Admin Manager
Mr. Bashir Ahmad Banking & documentation Manager
Mr. Muhammad Khuram Export Documentation Manager
Mr. Huammad Ahmad Account & Finance Manager
Mr. Muhammad Zahid Deputy Accounts Manager
Mr. Muhammad Amjad Assistant Accounts Manager
Source:
http://www.sitaratextile.com/
 
 
 

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