Foundation University

Faculty of Management Sciences, Department of Business Administration

BBA Project 2

Qazi Trading Company

Final Year Project 2

By:

Asif Nazir Sindhu

F161BBAH048
Nimrah Nadeem
F161BBAH072
Sundas Rafique
F161BBAH119
Farwah Shahab
F161BBAH127
Muhammad Kamran
F161BBAH022

FACULTY OF MANAGEMENT SCIENCES

FOUNDATION UNIVERSITY ISLAMABAD

1
 (Spring 2020)

DECLARATION

The substance of this project report is the original work of the author and due references and
acknowledgements have been made, where necessary, to the work of others. No part of this report
has been already accepted for any degree, and it is not being currently submitted in candidature of
any degree.

__________________
(Asif Nazir Sindhu)
F161BBAH048

__________________
(Nimrah Nadeem)
F161BBAH072

__________________
(Sundas Rafique)
F161BBAH119

__________________
(Farwah Shahb)
F161BBAH127

_______________
(Muhammad Kamran)
F161BBAH022
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 DEDICATION
This report would not have been possible without the knowledge we gained during our time
at university and the tremendous effort of all the faculty of management sciences to come up
with comprehensive course outlines and lectures throughout the degree.

We would also like to thank Qazi Trading Company for allowing us to visit them and bother
their dedicated employee’s to answer some of our questions. Also for letting us spend more
than four hours at the company to gather various types of information.

It not only helped us in the application of our course but also taught us the inner workings of
a company and potential problems that can arise.

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 Executive Summary
The following report provides detailed information regarding Qazi Trading Company. The
company was chosen as the subject of our final year project that involved visiting a company
of our choice and observing or interviewing the employees to analyze a problem. The report
first provides an overview of the company itself as well as its history. Followed by the
method we used to collect that from the said company.

The two main people of interest in this report are Mr. Hassan the Office Assistant that briefed
us on the company and Mr. Nohman Javaid the Finance Manager of the Murree road branch
who graciously took time out of his busy schedule to allow us to ask him questions. The
questions were asked to determine the internal culture of the firm, employee satisfaction and
the inner workings of the company.

The report also includes our deductions of the observations we did while our visit to the
company. The deductions are based on knowledge we gained through our courses at
university and well as common sense.

Lastly the seven questions are answered in the report regard the data we collected. The
questions answer the problems Qazi Trading Company is facing with respect to
organizational culture and the concepts we can apply to the problems. We also propose a
solution to the problems at hand and how we would relay the solutions to the client company.

All in all, this report allows us as students to apply the theoretical knowledge that was relayed
to us over the course of the degree.

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 TABLE OF CONTENTS

DECLARATION II

DEDICATION III

EXECUTIVE SUMMARY IV
TABLE OF CONTENTS V
CHAPTER ONE: INTRODUCTION 1
1.1 PURPOSE 1
1.2 LIMITATIONS 2
CHAPTER TWO: FIELD STUDY 3
2.1. BUSINESS PROBLEM IDENTIFICATION 3
2.2. CAUSE(S) OF THE PROBLEM 3
2.3. ACTUAL AND POTENTIAL CONSEQUENCE(S) OF THE PROBLEM 4
2.4. RECOMMENDATIONS 5
APPENDIX 6

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 CHAPTER ONE: INTRODUCTION
1.1 Overview of the Company

Qazi Trading Company is a sole proprietary concern of Mr. Muhammad Saleem Qureshi.
Who is the mastermind behind the success story of this organization?
Qazi Trading Company is one the leading private sector organizations in Pakistan engaged in
the business of motorcycle leasing or installment sale since 1994. It is a premium dealer of
Atlas Honda Motorcycles and Power Products committed to provide best value for its
customers against installment sales. It deals with the distribution of Pak Suzuki Motors
Company Limited under the name of Suzuki City Corporation for Punjab province. The
company is also a manufacturer of motorcycles with the brand ‘Elite Motorcycles’, with a
state of the art manufacturing facility that has an annual capacity of 30,000 units.
The company has its head office located in Rawalpindi, with its branch offices located in the
cities of Lahore, Faisalabad, Multan, Gujranwala and Gujrat regions, which have the largest
sale of motorcycles in Pakistan. Though Qazi Trading Company does not operate as an Atlas
Honda dealer in other cities, yet it offers financing to such authorized dealers of Atlas Honda
that could not either arrange capital or develop expertise to make a sale on installments. Each
branch office of our company is managing multiple outlets of Atlas Honda dealers for its
installment sale. Presently it has partnerships with more than 20 dealers of Atlas Honda
dealers around the province that offer their dealerships as a channel for our installment sale.
In recent years, Qazi Trading Company has diversified its leasing services from motorcycles
to Cars and Electronics Market. The reason behind this move is to cater to their unmatched
customer base in the motorcycle industry that includes nearly 80,000 loyal customers who
consider the company’s services for any of their leasing needs. The firm gives its well-trained
marketing department the credit for enabling it to retain their strong customer’s portfolio.
The company has also ventured into the production of its own product line of motorcycles
from 2014 for which it has established a state of the art manufacturing plant in the heart of
the country's industrial region. The motorcycle brand introduced is ‘Elite Motorcycles’,
which has seen steady growth in sales since the start of its formal production in Oct 2014.

1.2 Purpose

Qazi Trading Company is a twinkling star in the business field, with its driving execution in
different business circles in an exceptionally limited capacity to focus time. The
establishment of this company was laid just about three decades’ prior in the city of
Rawalpindi in 1994.
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The fundamental purpose is to study the culture and legislative issues and to recommend
some solutions.
As the Qazi Trading Company vigorously depends on rewards to motivate their employees so
it makes it a very competitive place for the employees.
We have recognized that the idea of the issue at Qazi Trading Company is by all accounts
clashes and contradictions between employees as well as a bit of organization politics.
Contradictions between colleagues can happen in any association because of the differing
character and needs of individuals. Employees could likewise be experiencing something in
their individual life which impacts their disposition at work. Main concern clashes are a
typical part of each association.
Right off the bat the easygoing climate in the firm permits the workers to converse with each
other transparently which implies that they can likewise discuss one another and use it for
individual advantage without thinking about its adverse impacts. Furthermore, we were in the
workplace during their mid-day break. Despite the fact that representatives aren't confined to
remain in the work zone throughout their break, two workers decided to and we utilized this
to our advantage. Talking behind someone's back made us realize that company politics
might be at play here. Company politics often occurs when employees want to sell their
ideas, achieve a targeted objective, influence the organization, or increase their power. To
reach these goals, politically-motivated individuals form alliances, bargain, and negotiate to
get what they want for themselves and for their group. As seen with what the two employees
were doing during their lunch break.

1.3 Limitations
The shortcomings we had during this whole research process were shortage of time as we
were allowed to talk the representatives for a short amount of time obviously because we had
to meet them during their working ours. Also prior to the interview we had to go through the
whole procedure of taking a written appointment for this interview which took a lot of time.
Now the limitations can be divided into three categories Pre-Interview, During Interview and
Post Interview. Pre-Interview have already been discussed above. Now let’s talk about during
the interview. So, the responses we recorded were not completely genuine as whenever you
interview someone they hold some sort of a Bias. All the representatives were all positive as
they didn’t want their organization to look bad although the study we conducted is not going
to be public or maybe not even affect their business at all but that’s how we humans are.
Personal Bias, Interview Bias can never be eliminated completely although they can be
minimized by using some techniques. Another limitation is that we studied/interviewed the
organization only once as we might get better and more accurate results if we continuously
study them for a certain amount of time. Another limitation is that we only interviewed the
top position managers which indicates that these managers were not the representative of the
whole population which is the organization. Another limited is that we have to believe what
the interviewee has to say as we do not have any way to verify the information given to us.

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 CHAPTER TWO: FIELD STUDY
2.1. Method of Data Collection

The methods opted for data collections for this project are interviews and observation. These
two methods were chosen on the basis of their reliability. Interviews often give valuable
insight to what is actually happening in the company from the employee’s point of view and
the employee's body language can be assessed to understand different cues such as whether
they like a question or they don’t.
Whereas observation gives insight as to how a group, department or a company works as a
whole unit. Again here, just like interviews, non-verbal cues play a strong role. However, as
business students we realize that the Hawthorne Effect could occur, so to the best of our
abilities we tried to be discreet while observing and acted as though we were talking to one
another.
We didn’t go for the survey method as it would be extremely time consuming and people
tend to not take them seriously. Not only are surveys more difficult to make as we learned in
our Business Research course but also generate unreliable information at times as people find
filling them out a tedious task.
2.2. Key Personnels
a) Office Assistant

Mr Hassan is the current office assistant at Qazi Trading Company. He has been with the
company for nearly seven years. We learned that he has been a valuable asset to the company
since he was first hired, from his boss. Also that he is an easygoing person who gets along
with almost all of his colleagues which is an important trait for a person so has to
communicate with many different people with varying temperaments on a daily basis.

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On 6th March, the day we visited the company, we were directed towards Mr. Hassan, who
briefed us on what the company does and its history.
b) Finance Manager

For the purpose of this project we as a group decided to focus on the finance department of
the company. Being the most complex department within any company, we assumed that if a
problem had to exist in Qazi Trading Company it would be known by the finance department.
Upon our request, Mr.Hassan scheduled a meeting with the company's finance manager.

Mr Nohman Javaid has been a loyal employee of the company for the past 15 years, where he
gained years of experience and management skills. During our conversation with him, he
spoke very fondly of the company and took the time to highlight its notable achievements. He
broke down what the company was currently doing, its aspirations and its shortfalls.
2.3. Interview Questions

The questions we asked him:

Q1) Most companies face a wide range of problems in their day to day working, what
would you say are some of the problems that Qazi Trading Company faces?
“In my opinion the company is doing great. Most problems occur when a company’s
finances are low. But since QTC has no such issue most problems don’t occur here. If you’re
talking about the employees, yes conflicts happen. But the conflicts are usually between
colleagues and not superiors. Employees here respect their superiors.”

Q2) What kind of management style is used here?

“I would say mostly democratic. We believe in recognizing valuable ideas and efforts from
the employees.”

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Q3) Are employees offered any benefits here?
“Yes, mostly bonuses which includes recovery bonus, but also sales commissions”.

Q4) Are the salaries offered here similar to those offered by QTC’s competition?
“The salaries are competitive. But each employee can get a higher salary based on their
productivity. For example, a sales representative here gets a basic salary as well as
commission for every motorbike he sells.”

Q5) Are the strategies employed by all managers the same in terms of management?
“QTC prides itself in having an open door policy for all of its employees as well as being
empathetic towards them. Other than that, each manager does add his or her own touch to
their department. Meaning some might be more open to job rotations where as others aren’t.

Q6) What would you say is the motto of Qazi Trading Company?
“A happy employee is a productive employee. Employees can easily walk into their managers
offices and discuss any problem that they are facing, whether its personal or professional.
We believe that by solving the employee’s problems, the loyalty to the company increases
thus making them more productive”.

Q7) Do the employee’s feel valued here?

“Yes for my department at least. I have a very open and casual relationship with them and
they have shared that they like working for the company. We even have casual lunch outside
office working hours.”
Since the employees were busy working, we were unable to interview them. Therefore, we
decided to observe them while sitting in the waiting area.
What we deduced from our observations:
❖ Employees casually talked with one another regarding their work.

❖ There didn’t seem to be much bureaucracy.

❖ In the four hours we were there, six employees went into the manager’s office without
scheduling a meeting.
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 ❖ During the lunch break when no one was in the office, except two employees who
talked about a third employee.
2.4. Business Problem Identification

The nature of the problem at Qazi Trading Company seems to be conflicts and disagreements
between employees as well as a bit of organization politics. Disagreements between
colleagues can occur in any organization due to the varying personality traits and needs of
people. Employees could also be going through something in their personal life which inturn
affects their mood at work. Bottom line conflicts are a common aspect of every organization.
Organizational behavior states that workplace conflict is caused by the actual or perceived
opposition of needs, values and interests between people working together. There is also
conflict within individuals – between competing needs and demands – to which individuals
respond in different ways. In Qazi Trading Company this could be employees competing to
be recognized by their superior or competing for the highest bonus.
We also believe that there is company politics at play in Qazi Trading Company for two main
reasons. Firstly, the casual atmosphere in the firm allows the employees to talk to one another
openly which means that they can also talk about each other and use it for personal gain
without considering its adverse effects. Secondly, we were in the office during their lunch
break. Although employees aren’t restricted to stay in the work area during their break, two
employees did decide to and we used this to our benefit.
The employees while enjoying their lunch engaged in a conversation about a third employee
named Anwar who happened to be their colleague. Assuming we were customers, they
continued to talk about Mr Anwar and how his latest work decision wasn’t the right choice.
Although we didn’t get to hear what the decision actually was, talking behind someone's back
made us realize that company politics played a great part here.
Company politics often occurs when employees want to sell their ideas, achieve a targeted
objective, influence the organization, or increase their power. To reach these goals,
politically-motivated individuals form alliances, bargain, and negotiate to get what they want
for themselves and/or for their group. As seen with what the two employees were doing
during their lunch break.
2.5. Cause(s) of the Problem

Mindset of Self Achievement

Employees have a clear mindset of winning and putting themselves before others. They
engage in politics to earn bonuses and to increase their rank or position within the
organization. They seem to have good relationships with bosses while at the same time face
severe competition with their colleagues. The mindset at Qazi Trading Company revolves
around employees showing their superiors that they are only ones who truly work with

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sincerity and honesty in the firm. Employees here strongly believe in working alone to show
their individual effort rather than working in teams with others.

Open Communication Style

As it is with many other companies within the country, the employees at Qazi Trading
Company like to socialize and talk to each other. As a result, employees end up talking ill
about each other behind their backs and if this continues unchecked, the organization will
suffer. As every organization strives to have the best culture where employees always work
as a team and work for the collective benefit of the firm not just their own. This type of
backbiting leads to a toxic culture which could hurt the organization badly.

Employee Conflicts

As mentioned above the employees at Qazi Trading Company, tend to only focus on their
personal benefit rather than the mutual benefit of all employees and the firm. This often leads
to conflicts with one another. Politics tends to play a central role within the organization
solely to get advantage over others in the form of employee appraisal or bonuses.

Conflict is usually caused by differences in personality, the inability to meet cultural

expectations and the failure of the higher ups to understand their employees or the
competitiveness present between them.

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2.6. Actual and Potential Consequence(s) of the Problem

Scares Business Away

Strong and regular customer service is essential to the success of any business. If customers
perceive the employees behavior negatively then it can lead to customer complaints and an
overall negative public image of the organization. Customers are the main purpose of
existence for any company and if the company develops a negative image in the market then
ultimately it results in the loss of sales and customers.

Imitation of Behaviors

There’s always a risk that people start to see certain types of negative behaviors as career
enhancing and start to imitate them. In such a company, employees that manage to cheat or
scam their way to success set a path for others to follow suit. This can also be seen when
managers are not loyal to the company and dont take action against the negative behavior and
attitudes of the employees. Also when managers themselves exhibit such behavior, or when
they are seen to promote someone who does.

Organizational Behavior:

Adverse behavior and misunderstanding always disrupts the normal functioning of a

company. It's human nature that when we’re satisfied, we tend to behave well, likewise if
employees are kept happy and satisfied then they will generate better quality of work.
Whereas if we’re not satisfied, we start to behave unorderly, similarly if employees are
unsatisfied or unhappy at their job, then their quality of work will display their discontent.

2.7. Recommendations

The recommendations to solve the two main problems are for office conflicts

1. Mediation

2. Arbitration

And for political behavior exhibited by the employees

1. Confrontation

2. Tracking employee performance levels

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Mediation is a conflict resolution process in which a neutral mediator (manager) assists the
parties through constructive discussion and negotiation of their issues in order to reach a
mutually acceptable resolution. Managers often have to intervene to resolve conflicts between
two parties. The intervention strategy employed, whether it's inquisition, arbitration,
mediation or a hybrid, should be the one that best suits the manager's objectives. Mediation
is the strategy that's the most empowering for the parties in conflict. However, it can be very
time consuming, and some disputants never resolve their conflicts through mediation no
matter how hard the mediator tries.

Whereas arbitration is a form of alternative dispute resolution, is a way to resolve disputes

outside the courts. The dispute will be decided by one or more persons known as the
"arbitrators". The arbitrators have the power to issue a decision that is binding on all
disputing parting. In certain situations, arbitration works better and in others mediation works
better. It really just depends on the circumstances and the personality of the disputing
employees. If a manager thinks the employees are equally dominating and prefer a win - lose
situation, then arbitration is the way to go to avoid one employee from losing.

Confronting on the other hand, involves in talking to the other person about the problem at
hand. The word is often used in a negative sense but in reality it isn’t. Confrontation involves
talking out issues with employees to understand their side of the story. This allows a manager
to make better decisions and in Qazi Trading Company’s case less political behavior.

Organizations often track their employee’s performance through performance appraisals. A

performance appraisal is a regular review of an employee's job performance and overall
contribution to a company. Also known as an "annual review," "performance review or
evaluation," or "employee appraisal," a performance appraisal evaluates an employee’s skills,
achievements and growth, or lack thereof. Companies use performance appraisals to give
employees big-picture feedback on their work and to justify pay increases and bonuses, as
well as termination decisions. They can be conducted at any given time but tend to be annual,
semi-annual or quarterly.

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2.8. Steps to Take

Qazi Trading Company mostly experiences horizontal conflicts, that are between colleagues.
Initially employees should be given a cool down period to come to their senses and resolve
the problem themselves. This can be suggested by the manager. Where the employees should

1. Talk with each other.

2. Focus on behavior and events, not on personalities.

3. Listen to each other carefully.

4. Identify points of agreement and disagreement.

5. Prioritize the areas of conflict.

6. Develop a plan to work on each conflict.

7. Follow through on your plan.

However, it is often difficult to reach a rational plan with the person you are in a conflict
with. If the employees can resolve it on their own it's all good but if they can’t, mediation or
arbitration may have to take place. Where the manager either mediates the above mentioned
process or makes a decision himself to resolve the issue. In arbitration the employees would
have to listen to the final word of the manager, whether they like it or not.

To stop the political behavior from occurring, the manager at Qazi Trading Company would
have to first identify the key players in politics. Then he could confront them, revise the
values of the company and highlight the consequences of political behavior for the company
and the employees that participate in it. Or the manager could track the key players
performance and avoid giving them bonuses. Employees who engage in politics often have
low performance as they are busy planning and scheming. These employees can be taught a
lesson by withholding their bonus especially as Qazi Trading Company heavily relies on
bonuses to make their employees feel valued. With no bonus the employees with realize that
office politics in not the way to satisfy their need for success instead better performance is.

2.9. Potential Barriers

The potential obstacles to our recommendations are firstly that the conflicting employees may
not want external help that is from the manager nor would they may not want to resolve the

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problem themselves. Oftentimes when we are angry we want to be left alone not be bothered
to resolve the problem.

If the employees aren’t willing to talk out their problems, then it is a major barrier as the
problem will never be resolved and start to adversely affect the company. And by refusing the
managers help they might be jeopardizing their reputation in the company.

Arbitration and mediation might be hindered if the manager is unable to spare time to help
out his employees. This could be so if the manager has external pressure on him from his
superior.

Whereas the only obstacle in our political behaviors recommendation can be the managers
inability to identify the key players in such behavior.

2.10. Potential Risks

The first consequence is that employees often can’t resolve their conflicts by themselves as
they can get to disagreements while discussing the solution plan. To combat this, we
mentioned that the manger should either mediate or make use of arbitration to solve conflicts.
However, the problem with mediation is that the manger may start to identify with one
employee more than the other due to his own personal experiences that end up making the
process of mediation bias.

Arbitration on the other hand can prove to be ineffective if the manager’s expertise don’t lie
in conflict resolution. If the manager ends up making the wrong choice both the parties have
to suffer with its consequences whereas the manager doesn’t. The manager may not be the
best judge of the situation and may not be able to take the right action. In such a case
arbitration will prove to be ineffective.

Regarding office politics, the barriers that may be involved in limiting it are that the manager
may find it difficult to identify the key players engaging in such behavior. This difficulty may
arise due the discreetness of the key players. As mentioned above the employees in Qazi
Trading company only engaged in such behavior when no other employee was a round. By
confronting the employees about their behavior can escalate the situation, if the employees
decide to argue with the manager on being penalized.

Lastly not every employee that has low performance is engaging in office politics. Low
performance can come from a number of reasons such as personal issues, the demands of the
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job don’t match with the employees capabilities and etc. Also no bonus could demotivate the
employees and further deteriorate their performance. An agitated employee may even
threaten to quit or file a harassment suit against the manager for picking on him.

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