Overview of the Management Practices of Al Raaziq International (Pvt) Ltd

Prepared for Imran Akbar Saifi

Managing Human Capital

Class: BSc (SC&O) Section: D, Fall 202

A Study Conducted by:

M. M. Umair F2019331005

Salman Rashid Ch. F2019331008

Omar Abdullah F2019331010

H. M. Najid Butt F2019331011

Ahmed Ishaq F2019331028

University of Management and Technology

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Contents
Executive Summary:...................................................................................................................................3
Introduction.................................................................................................................................................4
Company Background:............................................................................................................................4
Mission Statement...................................................................................................................................5
Vision Statement.....................................................................................................................................6
Core Values:............................................................................................................................................6
Core Competency and Resources:...........................................................................................................7
Departments of the Company:.................................................................................................................8
Industry profile:...........................................................................................................................................8
External Environment:.............................................................................................................................9
Political conditions:...........................................................................................................................10
Environmental conditions:.................................................................................................................10
Social conditions:..............................................................................................................................10
Technological conditions:..................................................................................................................10
Competition:......................................................................................................................................11
Labor force characteristics:................................................................................................................11
Internal Environment:............................................................................................................................12
Strengths:...........................................................................................................................................12
Weaknesses:......................................................................................................................................12
Opportunities.....................................................................................................................................13
Threats...............................................................................................................................................13
Workforce Utilization:.......................................................................................................................13
Workforce Characteristics:................................................................................................................14
HR Management at Raaziq International:..................................................................................................14
Hierarchy at Human Resources:............................................................................................................15
Activities performed by HR Department:..........................................................................................16
HR Practices followed by the Organization:......................................................................................18
Flaws in HR Practices:..............................................................................................................................19
Conclusion:...............................................................................................................................................20
Evidence:...................................................................................................................................................20
Interviewee:...........................................................................................................................................20

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Executive Summary:

In 1974, a Customs Brokerage House in Lahore, Pakistan, was where

Raaziq's journey began. At that time, the late founder Mr. Dost Muhammad Khan and his late

visionary CEO son Muhammad Nadeem Khan laid the seeds for what would soon blossom into a

thriving homegrown worldwide brand devoted to the goal of bridging communities at home and

abroad. This research focuses on several strategic analyses of Raaziq International, including

analyses of the HR process. The purpose of the research was to comprehend the many business

concepts that the organization is using. The paper includes several analyses of strategies,

corporate policies and procedures, as well as some recommendations. The main assignment for

the university course is this report.

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Introduction

Company Name: Raaziq International (Pvt) Ltd

Company Industry:

According to Raaziq, “With every new challenge, we create new

solutions.” Consequently, since 1974, they have established roots in a range of businesses,

including

 Logistics

 Product Marketing & Distribution

 Real Estate Development & Management

 Manufacturing

 Automotive Engineering

 Public Transport

Company Background:

In 1974, a Customs Brokerage House in Lahore, Pakistan, was where Raaziq's journey began. At

that time, the late founder Mr. Dost Muhammad Khan and his late visionary CEO son

Muhammad Nadeem Khan laid the seeds for what would soon blossom into a thriving

homegrown worldwide brand devoted to the goal of bridging communities at home and abroad.

Over the years, Raaziq has added a wide range of services after first growing into a full-scale

logistics company. Customs clearance, multimodal transportation, temperature-sensitive

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logistics, warehousing and inventory management, transit trade, project advisory and

management, information technology, transit security, technical services, and supply chain

consulting are some of these services offered today.

Raaziq has developed into a one-window solutions supplier for a range of businesses in the

nearly 50 years since its founding. Services in public transportation, sales and distribution,

engineering, manufacturing, and real estate development provide customers and partners with

effective solutions at the cheapest price as Raaziq Holding continues to accept new challenges.

Raaziq is happy to be a Pakistani company with a strong global network and to be well-versed in

the different people, landscapes, and resources of the country. Over the course of three

generations of leadership, what started as a family business with a value system that places

people at the heart of every solution and success has expanded into a family of over 2,200

workers who serve over 20,000 customers globally. With a team of seasoned industry

professionals, Raaziq is today motivated by the same commitments and values that are woven

into the fabric of every product, service, and solution for its clients. (raaziq, n.d.)

“Innovation breeds opportunity, and it is because of this that Raaziq’s story continues to unfold.

With each new connection, achievement and milestone, Raaziq isn’t just right where you are, it’s

right where you want to be.” (raaziq, n.d.)

Evaluating Mission and Vision Statements:

Mission Statement

As the top logistics and supply chain company in Pakistan, Raaziq wants to maintain that

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position. By adhering to global standards and best practices, Raaziq strives to interact with its

clients, suppliers, and partners in a way that is highly dependable, environmentally friendly,

effective, and ethical. Our goal is to foster a culture where cooperation is valued and where

employees can advance their careers and personal lives. In order to really dynamically connect

Pakistan to the global market utilizing the greatest logistics tools, Raaziq intend to continue

working with the best international partners. (www.mustakbil.com, n.d.)

Vision Statement

“In terms of our performance in the areas of economic, social, and environmental sustainability,

our long-term vision covers all aspects of operating sustainably.” (www.mustakbil.com, n.d.)

Core Values:

 Integrity

 Enablement and Responsibility

 EHS (Environment, Health & Safety.)

 CSR (Corporate Social Responsibility.)

 Hunt for excellency

 Team Management

 Trust Worthiness

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Internal analysis of Company:

Company Profile:

Since the past ten years, management at Raaziq International has been

effective in integrating consumers into their families. The journey began with the inaugural

service under the name Raaziq, and over time, its service line and service area expanded. Both

Pakistan's rural and urban areas are included in the geographical component of Raaziq

International. The design of Raaziq reveals both those who are growing in contemporary markets

and those who adhere to a creative enterprise one model. Additionally, Raaziq recently

redesigned the entirety of its organizational structure, but in order for its culture to become

significantly more high-quality and in order to improve performance, a significantly more clearly

defined hierarchy was needed.

Core Competency and Resources:

Transparency, Value, Efficiency, and Control are services that the

company asserts to offer. They further claim that "by enabling our partners and utilizing our own

resources, we are able to attain the biggest outcomes quickly and for the lowest cost".  A wide

range of services are offered by our team of regional professionals, who are also available round-

the-clock to deliver unrivalled competence at every level. According to the company, this all is

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being done through State-of-the-art contemporary solutions, provided in-house by Raaziq.

By paying attention to and caring about its customers and acting in accordance with their wishes,

the company is effective in gaining their loyalty. (raaziq.com, n.d.)

Many accomplishments have been made by the organization in the field, including

 Named as “Logistic provider of the year” by containerization International, UK

 Agent for development for NATO-led security mission, ISAF in Afghanistan 2004

 Best export performance award and brand of the year award by FCCPI for nine

consecutive years

 LCCI Best Export Performance award

 SAARC Country Achiever Award

 Global Business Excellence Award

 CSR National Excellence Award

 HR Excellence Award

 Pakistan Government contract for managing Lahore Metro Bus project

Departments of the Company:

 Human Resource Department

 Finance Department

 Sales Department

 Technical Department

 Marketing Department

 Research & Development

 Operation Department

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  Information System Department

 Purchase Department

 Warehousing Department

 Transportation Department

 Inspection and quality control Department

 Record Department

Analysis of Internal & External Environment:

Industry profile:

With its WCA registered office in Lahore, Raaziq is Pakistan's top logistics

service provider, serving all commercial and industrial hubs. Since 1974, our company has

concentrated on providing customers with really individualized service and adaptable supply

chain solutions catered to their unique business requirements. Our clients come from a variety of

sectors, including the construction of infrastructure, the automobile, consumer products, high

tech, industrial projects, oil and gas, retail, electricity, and defense.

With cutting-edge freight forwarding, Customs clearance, warehousing, transportation, and

"track and trace" solutions with full visibility on their self-developed ERP, Raaziq offers

unparalleled service and tailored capabilities to address our customers' unique logistics

challenges. With a fleet of more than 350 vehicles in all configurations, their own cold chain

equipment, more than 1,000,000 square feet of inventory management space, and internal

technology solution development capabilities, Raaziq has the distinct advantage of offering total

control over the whole logistics process.

The capacity to facilitate transit business and CPEC (China Pakistan Economic Corridor)

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initiatives under OBOR "One Belt One Road" gives Raaziq another strategic advantage. With

our knowledge of local laws, regulations, and documentation requirements, they can assist any

FDI initiative.

External Environment:

PESTEL ANALYSIS of Raaziq International Limited:

PESTEL analysis, which demonstrates how the external business environment is affecting the

business, is a method of analyzing the external business environment. Political, environmental,

social, economic, legal, and technological aspects are being evaluated for this goal.

Political conditions:

For many years, Pakistan's political situation has not been stable. Although the firm is greatly

impacted by this uncertainty, the company's business process structure and vendor management

remain constant. Due to the country's political climate, the corporation is now successful in

managing the difficulties brought on by this political unrest. However, every government

invested in agriculture and related industries, which had a favorable effect on the industry and

made it thrive.

Environmental conditions:

The country's environmental conditions are not ideal, and as a result, the company's procurement

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department has some difficulties. But as time went on, the environment improved thanks to

government policies, and technical advancements made it easier for businesses to address

various environmental problems.

Social conditions:

The country's everyday living pattern has changed as a result of technological growth. The

country is now resembling a little town, with everything easily accessible. Moreover, individuals

are choosing products with more care thanks to education and awareness. Additionally, this

assisted the business in comprehending the shifting consumer behavior and aiding in its strategic

responses.

Technological conditions:

The essential element that the company is utilizing to be in the market with its constant quality

management philosophy is increased innovation and technology. Businesses using the most

recent engineering have certain cost advantages over businesses not utilizing high innovation.

High engineering for quality and cost objectives is the only option for businesses in this area to

survive.

Competition:

Competitor: The competitor of the Raaziq International put limited are BSL and NLC

In the workforce, Raaziq International is in competition with BSL and NLC. Both businesses

employ a variety of technical and non-technical employees. There are two primary types of labor

that are crucial to the business. One is the labor force to handle the initial level of work, such as

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loading, packaging, and material handling, and the other is the technical personnel in logistics,

who are in charge of timely product distribution. These two individuals make up the key staff

group that is crucial to the business.

Labor force characteristics:

Local residents who live nearby make up the majority of the workforce at Raaziq International.

These people have a maximum level of education of intermediate, although the majority of them

are illiterate. Because only men are capable of doing the tasks given to labor, there is gender

parity in Raaziq International's workforce. The company's labor force performs heavy lifting,

loading and unloading, organizing unloaded cargo, and some work at the distribution network.

The warehouse, however, employs the majority of workers because they are quite familiar with

business operations. The company's management feels at ease because some of the labor force is

educated. These workers assist others in understanding new company practices, and in a similar

vein, training can be given to the workforce to help them be prepared for changes in work

practices.

Internal Environment:

Strengths:

 Raaziq International is a business whose sales revenue is increasing, which in turn is

luring clients and other market participants.

 Raaziq International has a big and reliable distribution network.

 Raaziq International has a great brand reputation, a successful corporate environment,

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 and a corporate social responsibility program.

 Raaziq International also has a robust research and development department that

consistently conducts research to produce high-quality products.

 The company's marketing methods are incredibly creative and effective at attracting

customers.

 The business is ISO 9002 certified.

Weaknesses:

 There is no credit sales policy.

 The margin is low because of high value-added product

 Owing to the economic condition of the country, a small number of investments is being

made by the company

 Few products launched in market faced failure

 Less promotional activities

Opportunities

 In growing economies where agriculture is less important, there is an increase in the rate

of rural to urban migration. Accordingly, there will be a growth in the population of cities

and towns, which will result in a greater demand for supply chain management services

from both businesses and households. This may present a sizable opportunity for logistics

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 firms.

 Digitization will give logistics firms a major cost-savings opportunity, and it will also

transform a sector that previously relied heavily on labor into one that does so now.

Threats

 Customers today have highly specific wants, thus providing for these needs will pose a

significant threat to logistics organizations. This may indicate the need for robots’

technology to enhance last-mile delivery and to further customize logistics services.

 Competitive environment is shifting rapidly, and logistics companies like Agility will

need to be on guard to maintain their current clientele given the rising popularity of

online merchants and third-party logistics (3 PL) services.

Workforce Utilization:

At Raaziq International, the staff is well utilized. The division of the workforce under the

direction of the general manager of each department is made possible by departmentalization

inside the organization. Departments and the organizational structure have already been

addressed. The quantity of working hours and associated bills is known as the workforce

utilization. All warehouse staff utilization is tracked using HRBP, which is subsequently

forwarded to a payroll specialist. Payroll specialists manage the workforce utilization for

employees at the corporate headquarters.

Workforce Characteristics:

People with less education or literacy make up the bulk of the Raaziq workforce. These can be

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found in the close-by residential neighborhoods of the workplace. The workforce, often known

as the labor force, is broken up into several labor tasks. Consignment loading and unloading is

one of the tasks assigned to some of the workers. This consignment can be picked up at a

specific corporate location or by going to the production DC or warehouse. A portion of the

labor is assigned to the warehouse, a portion to consignment picking, a portion to packaging, and

a portion to supply chain.

HR Management at Raaziq International:

The General Manager HR at Raaziq International Limited is in charge of the department's human

resources. Assistant Managers and officers are next in line. The department in charge of

managing the company's whole personnel file is the HR management department. There are three

categories of employees, according to the HR department, including permanent employees, who

number 500+, contractual employees, who number 500+, and third-party recruited employees,

who number 1000+. (raaziq.com, n.d.)

Following are the different functions carried out by the department.

 Recruitment & selection

 Training and development

 Formulation and implementation of the policy and procedures

 Performance management

 Competency, physical benefits and compensations

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  Labor management and industrial relations

 Strategic development

The dress code, paid vacations, and employment management are all covered by HR policies.

Different departmental tests serve as the foundation for the performance management. The HR

department can better grasp any shortcomings in policies and plans thanks to the HR audit. If a

people shortcoming is discovered to be the root of a policy or plan, it is thoroughly redesigned.

The competency of the employees is periodically evaluated using competency modelling. It is

the procedure by which the business is able to evaluate the performance, competencies, and

abilities of the staff needed for them to carry out their responsibilities successfully and

efficiently. Additionally, it makes it possible for the HR division to start a variety of trainings,

refresher courses, and personnel development programs for the company's human resources.

The company also provides different benefits to the staff in addition to the salary which are as

under;

 Vehicle

 Fuel allowance

 Trips and tours

 Medical benefits of employee and its family

Hierarchy at Human Resources:

CEO

GM HR ( Raazia
Bokharey)

Manager Admin &

Manager HR
HR/IR
(Jarar Uddin)
(Sohail Noor)
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AM Manager
AM Compensation HR/IR
Payrol Specialist
& Benefits
 (Nazish Hayat)

Director HR directly reports to the Chief Executive Officer.

In the HR department, there are two deputy managers. One is headquartered in the headquarters,

and the other is based in the warehouse. Head office has one Assistant Manager, Human

Resources, and one expert. One is in charge of pay and benefits, and the other is in charge of

payroll administration. The warehouse only has one deputy manager. While the manager is

helping with his duties and labor relations, the deputy manager is in charge of HR and

administrative tasks. At the warehouse, there is one executive HR.

The major function performed by Manager HR are as under;

 Training and Development

 Organizational development

 Career & Professional development

 Strategic HRD and Management

Following is the job description of the Manager HR

 Knowledge and understanding of multiple issues of the human resource in the company

 Employee relationship management

 Compensation & Benefits

 Training and OD

 Recruitment, selection & Retention

 Personnel communication management

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  Coordination and reporting

Activities performed by HR Department:

HR department has the following activities to be performed

Job description & Specification:

Every time a request comes in from the department, the manager of human resources and the

head of the department making the request discuss it. The job analysis is completed after

gathering all the necessary data, and the job description and specification are created based on

this analysis.

Interview and Selection:

At Raaziq, candidates are initially shortlisted by the HR manager before being interviewed over

the phone or via any online platform (Skype, Zoom, and WhatsApp). Following another round of

shortlisting, the surviving or selected candidates are then invited for an interview in-person, if

practical. The way an interview is performed depends on the circumstances and the requirements

of the position, such as whether a panel or mass interview is used. Salary and benefits are

negotiated after the candidate is chosen, and after confirmation, HR requests a letter of clearance

or a resignation from the prior position within 3 to 5 working days.

Orientation & Training:

The HR department is in charge of providing new hires with orientation so that there won't be

any commotion when they start working for the company. The employee receives personalized

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orientation as soon as they are employed.

Compensation & benefits:

According to the HR department, all employees are paid at a rate that is in line with the market.

Every benefit is provided to workers and is being used as intended. The HR department, for

instance, handles medical claims. Any further complaints or issues are also handled by the HR

department.

Professional development:

HR is in charge of ensuring that employees improve professionally, and does so through job

rotations, job expansions, and job enrichment. Interdepartmental transfers are another way for

Raaziq employees to advance their careers.

Performance Management:

Performance management is built upon performance appraisals, which are finished annually and

semi-annually. A 360-degree performance appraisal method is used in Raaziq.

Policy development and compliance:

The HR department is responsible for creating a variety of policies, mostly concerning human

resources. It guarantees that the policy is known about, understood, and followed by every

employee across the board.

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Strategic Human Resource Management:

At Raaziq International, there is no strategic human resource management. Five-year planning is

necessary for effective HR management. While planning is done at Raaziq on an annual or

quarterly basis, it does not result in strategic human resource management. They say they're

working on it, but they haven't offered any details on this particular subject.

HR Practices followed by the Organization:

Job Analysis:

There is a procedure in the company for the job analysis. Annual job analyses are conducted. It

takes two months to complete this meticulous process. All of the job descriptions and analyses

are sent to experts during this phase, who then review them and make any necessary adjustments.

The department head and the job requirements are taken into consideration when creating job

descriptions. Each year, these designs are reviewed.

Recruitment and Selection Process:

The department request is where the hiring process begins. Internal hiring is preferred for the

hiring process because all employees are familiar with the company's policies and processes. If

finding the best fit within is not possible, external recruitment is being done. A joint interview

with HR and line managers is conducted before being sent to the Managing Director (only for

senior positions) and being finalized.

Orientation and Training Process:

Individuals receive individual orientation. As a new hire, you receive orientation. A suitable

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schedule of 15-minute sessions is created for the orientation programs. Then the new employee

is invited by mail and the pertinent department is notified via mail.

Performance Appraisal:

A solid process for performance management is in place in the business. A 360-degree

performance appraisal method has been developed. Both semi-annually and annually, the

organization performs performance management. Key performance indicators (KPIs), which are

created in accordance with the job description, are used to evaluate performance. Performance is

measured using the weights that have been assigned. By multiplying the KPIs by the KRAs,

performance weighting is calculated.

Compensation Management:

The company has a suitable pay structure. At Raaziq, salaries are scaled from 1 to 16. There is a

set salary range for each grade. Salary surveys were used to assist create these salaries. These

compensation surveys are being gathered from businesses that are fiercely competitive. In the

business, the average of all surveys from rival firms is being used. Raaziq's pay structures are

thus competitive. In addition to the compensation, the corporation offers target-based incentives.

Any employee who reaches the goal will receive a financial bonus.

Employee Benefits:

In addition to paying salaries, the corporation offers its employees a variety of benefits. Salary

surveys and market competition are also used to finalize these benefits. Medical (IPD and OPD),

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gratuities, provident funds, mobile allowances, conveyance allowances, and other benefits are

provided to the employees.

Environment, Health and Safety:

The company's warehouse is implementing its environmental, health, and safety policies. Every

safety requirement is being followed.

Career Development:

There are various types of training programs available for the employees' professional growth.

Both technical and non-technical training, as well as basic and advanced levels, are included in

this education. Additionally, career development is furthered by implementing employee

engagement tactics such as work rotation, job expansion, job enrichment, and others.

Flaws in HR Practices:

The following are the flaws observed;

 There is no strategic HRM in the company.

 They have not just developed a pay plan. It’s been handled by third party till now.

 They are not providing any short-term incentives.

 The Human resources of the company has to be well versed with the latest practices and

trends induced in the market.

 Only 360 performance appraisal method is being used. Other method such as MOB,

BARS are not being used.

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  Very few paid leaves are provided annually.

 In peak seasons they required on-demand labor which is mostly handled by HRBP. Also,

flextime is not allowed to employees and some time they are required to do over time

with very little wages.

Conclusion:

In Pakistan, Raaziq emerged as the industry leader in the TPL or warehousing sector. The

company was profitable and benefited from the market. The business has been expanding

steadily and has not encountered any significant market problems. In the cold frigate or

temperature-sensitive material handling and distribution market, their largest rival, BSL, is

severely hurting them. Currently, the company is still existing. To reclaim its position in this

market, however, it must make some strategic moves. Human resources are essential in this

situation. Strategic HR management is being attempted by the company. When it comes to hiring

and keeping employees, conducting interviews, providing orientation and training, and gathering

information for job analyses to create JS and JD, HR is doing the best it can with the resources it

has. but underperforming in terms of payment and appraisal techniques.

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Evidence:

Interviewee:

Audio recording on drive

Link: https://drive.google.com/file/d/1U3-yozgkpR-Z76dWT2ivoh7ebkaEqxhp/view?

usp=drivesdk

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References
(n.d.). Retrieved from raaziq: https://www.raaziq.com/our-story/
(n.d.). Retrieved from www.mustakbil.com: https://www.mustakbil.com/companies/company/66612
(n.d.). Retrieved from https://www.raaziq.com/our-people/
(n.d.). Retrieved from raaziq.com: https://www.raaziq.com/our-people/
(n.d.). Retrieved from raaziq.com: https://www.raaziq.com/our-edge/
(n.d.). Retrieved from https://www.raaziq.com/: https://www.raaziq.com/our-people/

(Murtaza, 2015) (Murtaza, 2015)

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