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VIRTUAL UNIVERSITY OF PAKISTAN

Master in Business Administration (HRM)

INTERNSHIP REPORT Dawood Lawrencepur Limited

Submitted by

Misbah Shaheen ID: mc 070403054 Session: Fall 2009 Dated: 04-02-2010

Virtual University Of Pakistan

Dedication

I dedicate this report to my mother. She gave me mental strength to fight and deal with the hurdles of the daily routine faced during my internship. At this stage I can say that today what I am and where I stand is just because of her. Secondly to my father who have continuously given me moral support and encouraged me through out my studies of MBA. Finally I would like to dedicate this report to my Supervisors at Dawood Lawrencepur Limited who guided me through out my internship and even in the making of my report.

Acknowledgement

I owe my thanks to Almighty Allah who bestowed me the strength and wisdom to write this report and complete it I am also thankful to my family and friends for their support in my studies and internship. I am also grateful to Department of Business Administrative of Virtual University Pakistan who has provided us the courses of international level. In no way these are less significant and imperative than any university within the country or abroad. Every subject provides both theoretical and practical knowledge Coming to my internship report I would also like to thank all the staff and officers of Dawood Lawrencepur Limited. In particular I am grateful to Mr Shafique Hussain CEO and Mr Aman-ul-Haque Mills Manager of the company who permitted me for internship in Lawrencepur Mill; others include Mr Yousaf Ali Akhtar, Mr Khalid Umer Mehmood, Mr Arshad Mehmood Dar, Mr Tayyab Malik, Mr Shaukat Khan, Mr Zahid Hussain and Miss Shazia Perveen. Who gave me the confidence and guided me at each and every step of my internship period. It was great amusing experience first to work and then to write internship report. Actually it is a proclamation of my learning, education and experience of internship. I gained a healthier knowledge, skill and ideas of HRM. This report conferred me with the opportunity to put into practice of what I had learnt during my internship. I am thankful to all my evaluator(s) and reader (s).

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Executive Summary
Human resource management has developed in recent years as a broad encompassing field of study that incorporates and synthesizes elements form personnel management, labor relations, balding on broader concepts and insights form a variety of cognate disciplines including economics, law, psychology and sociology, amongst others. It has become integral to degree in Business administration and above all, to Masters in Business Administration (MBAs) following the decision at Harvard University to incorporate the subject into the core of its flagship programmer. Moreover, the Harvard School developed arguably the most commonly accepted definition of the term to include management decisions that shape the nature of the relationship between the organization of employee namely, its human resources. It is likely to become integral to managing organizations in the twenty-first century. The origins and development of any discipline depend greatly on key thinkers who have illuminated the field. Amongst the main world scholars and inventors who have enhanced the emergence of this broadly defined field of study include Chris Argyris, Charles E. Bedaux, Harry Braveerman, Hugh Armstrong Clegg, John Thomas Dunlop, Allan Flanders, Mary Parker Follett, Henry Ford, Frank Bnker Gilbreth, Lillian Evelyn Moller Gilberth, Alvin W. Gouldner Elton Mayo, Taiichi Ohno, Thomas J. Peters, Robert M. Reich, Randall S. Schuler, Frederick Winslow Taylor and Yoichi Ueno. Others could have been included in the roll of honor but those chosen seem to be the editors to be amongst the core of critical international formative thinkers constraints of space alone led exclusions form the potential list. The upshot therefore is an authoritative, inclusive and informed volume that we hope will provide a valuable reference base for an increasingly international audience. World businesses and their human resource systems are becoming ever more multi-national in their structure and operations. The issues encompassed in this Internship Report are thus likely to become ever more relevant and vital for management and business.

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My internship experience with Dawood Lawrencepur Limited taught me several aspects necessary for the success of HR professional. I learnt to think about Human Resource Management from the employees and managements perspective - the purpose of HRM The best feature of my internship was the access it gave me to a really motivated, hardworking, team of highly knowledgeable professionals at Dawood Lawrencepur Limited. The most important skill I learnt was the ability to work in a Team. I also picked up considerable skills in handling team communication, getting myself trained and the ability to adapt to the new changing scenario. I observed all the activities taking place in the production of the finished goods and the role of HR as well as other department role in the production. I observed how the HR department is motivating employees to get their required results. I would like to thank everyone who offered advice and encouragement throughout the development of the project.

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Table of Contents
TABLE OF CONTENTS.....................................................................................................................................X INTRODUCTION OF THE ORGANIZATIONS BUSINESS SECTOR....................................................1 ESTABLISHED CAPACITY OF TEXTILE INDUSTRY IN PAKISTAN ...................................................................................1 TEXTILE INDUSTRYS CONTRIBUTION TO EXPORTS...................................................................................................1 CONTRIBUTION TO GDP AND EMPLOYMENT.........................................................................................................2 ORGANIZATIONS IN THE INDUSTRY.......................................................................................................................2 OPPORTUNITIES AVAILABLE FOR TEXTILE INDUSTRY...............................................................................................2 OVERVIEW OF THE ORGANIZATION........................................................................................................3 BRIEF HISTORY.................................................................................................................................................3 NATURE OF THE ORGANIZATION..........................................................................................................................4 BUSINESS VOLUME (TOTAL NUMBER OF STOCK, SHARES, BONDS/COMMODITIES...........................................................4 Authorized Share Capital........................................................................................................................4 Future contracts planned.........................................................................................................................5 PRODUCT LINES................................................................................................................................................6 I) Market Orders.....................................................................................................................................6 II) Contract Orders.................................................................................................................................6 III) Garment Orders................................................................................................................................6 Product Description................................................................................................................................7 COMPETITORS..................................................................................................................................................8 ORGANIZATIONAL STRUCTURE.................................................................................................................9 ORGANIZATIONAL HIERARCHY CHART..................................................................................................................9 NUMBER OF EMPLOYEES..................................................................................................................................12 MAIN OFFICES................................................................................................................................................12 Head office............................................................................................................................................12 Registered Office...................................................................................................................................12 Main Offices at Plant.............................................................................................................................13 INTRODUCTION OF ALL DEPARTMENTS...............................................................................................................13 Production Planning Office...................................................................................................................13 R & D DEPARTMENT / DESIGNING OFFICE....................................................................................13 Accounts Department............................................................................................................................13 Cash Office............................................................................................................................................14 Wages Office.........................................................................................................................................14 Store Accounts.......................................................................................................................................14 Costing Office........................................................................................................................................15 Lahore Office / Administrations............................................................................................................15 Finished Cloth Inspection......................................................................................................................15 Goods Receiving Section (G.R.S)..........................................................................................................16 General Store........................................................................................................................................16 Boiler House..........................................................................................................................................16 Electrical Work Shop.............................................................................................................................17 Quality Control.....................................................................................................................................17 I.S.O Office............................................................................................................................................17 Civil Department...................................................................................................................................17 COMMENTS ON ORGANIZATIONAL STRUCTURE.....................................................................................................17 INTERNSHIP PROGRAM...............................................................................................................................17 INTRODUCTION OF THE BRANCH WHERE YOU DID YOUR INTERNSHIP.........................................................................17 INTERNSHIP DURATION....................................................................................................................................18 TRAINING DEPARTMENTS.................................................................................................................................18

TRAINING PROGRAM....................................................................................................................................19 WORK DESCRIPTION OF THE DEPARTMENTS........................................................................................................19 Production Planning Department..........................................................................................................19 The production planning department.....................................................................................................19 Job description......................................................................................................................................19 Head of production planning department..............................................................................................19 Deputy planning officer.........................................................................................................................20 Senior Supervisor production planning.................................................................................................20 Daily Stock of cloth/ Shawls/ Blankets as on daily wise made entries...................................................20 HUMAN RESOURCE DEPARTMENT OF THE ORGANIZATION...................................................................................20 Responsibilities .....................................................................................................................................21 Policy Making.......................................................................................................................................21 Advice....................................................................................................................................................21 Service...................................................................................................................................................22 Control..................................................................................................................................................23 General..................................................................................................................................................23 DESCRIPTION OF THE TASKS.............................................................................................................................23 Top Store...............................................................................................................................................25 Yarn Store..............................................................................................................................................25 Dyeing...................................................................................................................................................25 Spinning/ Twisting.................................................................................................................................25 Weaving ................................................................................................................................................25 Mending ...............................................................................................................................................25 Finishing...............................................................................................................................................26 STRUCTURE OF THE HR DEPARTMENT.................................................................................................27 DEPARTMENT HIERARCHY................................................................................................................................27 ...................................................................................................................................................................27 NUMBER OF EMPLOYEES UNDER HR DEPARTMENT...............................................................................................28 SUB-DEPARTMENT UNDER HR DEPARTMENT.......................................................................................................28 FUNCTIONS OF HR DEPARTMENT ..........................................................................................................28 HUMAN RESOURCE PLANNING AND FORECASTING ................................................................................................28 HRP process .........................................................................................................................................28 Forecasting HR requirements ...............................................................................................................30 Methods to forecast HR needs...............................................................................................................30 EMPLOYEES RECRUITMENT & SELECTION............................................................................................................31 Sources of candidates ...........................................................................................................................32 Employment selection process...............................................................................................................32 TRAINING & DEVELOPMENT.............................................................................................................................33 Training need assessment .....................................................................................................................33 Employee development..........................................................................................................................34 PERFORMANCE MANAGEMENT...........................................................................................................................35 Setting performance standards & expectations.....................................................................................35 Performance reports..............................................................................................................................35 EMPLOYEE COMPENSATION & BENEFITS.............................................................................................................35 Compensation & benefits offered by the company.................................................................................35 ORGANIZATIONAL CAREER MANAGEMENT...........................................................................................................36 Employee job changes...........................................................................................................................36 Job changes with the organization........................................................................................................37 Separations............................................................................................................................................38 LABOR MANAGEMENT RELATIONS......................................................................................................................39 CRITICAL ANALYSIS.....................................................................................................................................40 SWOT ANALYSIS OF DLL.............................................................................................................................41

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STRENGTHS ...................................................................................................................................................41 WEAKNESSES.................................................................................................................................................42 OPPORTUNITIES..............................................................................................................................................44 THREATS.......................................................................................................................................................44 CONCLUSION....................................................................................................................................................45 RECOMMENDATIONS....................................................................................................................................46 REFERENCES AND SOURCES......................................................................................................................48

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Introduction of the organizations business sector The textile industry is one of the most important sectors of Pakistan. It contributes significantly to the countrys GDP, exports as well as employment.Being Pakistans largest industrial sector it generates the countrys highest export earnings of about 60%, providing the bulk of employment (38%) to a largely under utilized work force.It is, in fact, the backbone of the Pakistani economy. Established capacity of Textile industry in Pakistan The textile industry of Pakistan has a total established spinning capacity of 1550 million kgs of yarn, weaving capacity of 4368 million square meters of fabric and finishing capacity of 4000 million square meters. The industry has a production capacity of 670 million units of garments, 400 million units of knitwear and 53 million kgs of towels. The industry has a total of 1221 units engaged in ginning and 442 units engaged in spinning. There are around 124 large units that undertake weaving and 425 small units. There are around 20600 power looms in operation in the industry. The industry also houses around 10 large finishing units and 625 small units. Pakistans textile industry has about 50 large and 2500 small garment manufacturing units. Moreover, it also houses around 600 knitwear-producing units and 400 towel-producing units. Textile industrys contribution to exports According to recent figures, the Pakistan textile industry contributes more than 60% to the countrys total exports, which amounts to around 5.2 billion US dollars. The industry contributes around 46% to the total output produced in the country. In Asia, Pakistan is the 8th largest exporter of textile products.

Contribution to GDP and employment The contribution of this industry to the total GDP is 8.5%. It provides employment to 38% of the work force in the country, which amounts to a figure of 15 million. However, the proportion of skilled labor is very less as compared to that of unskilled labor. Organizations in the industry All Pakistan Textile Mills Association is the chief organization that determines the rules and regulations in the Pakistan textile industry with consultation of government. It is the premier national trade association of the textile spinning, weaving, and composite mills representing the organized sector in Pakistan. APTMA emerges as the largest association of the country as it represents 396 textile mills out of which 315 are spinning, 44 weaving and 37 composite units. These spinning mills have production facilities of texturing, mercerizing and dyeing of yarns; weaving mills have sizeable number of air-jet looms, and the composite mills have manufacturing facilities from spinning to finished textile products under one roof. APTMA membership consists of partnerships and or individual proprietorships, which operate machinery for spinning, dyeing, texturizing, twisting, or otherwise processing of yarn, thread, or cordage, grey, printed and printed cloth and made ups for sale. The expenses of maintaining APTMA's professional staff and offices are met from the annual subscriptions and services provided to members. APTMA Principal Offices is the central administrative organization, but each member has its own offices and governing board. Opportunities available for textile Industry The world demand for textiles is rising at around 2.5%, due to which there is a greater opportunity for rise in exports from Pakistan.

Overview of the organization Brief history Dawood Lawrencepur Limited is located at Lawrencepur Town District Attock. The company is 70 Kilometers away form Islamabad. The Punjab Cooperative Society constructed the company in 1952. In 1954 Cooperative Society started business on trial bases. And the same year on commercial bases business was started. Cooperative Society led the company form 1954 to 1960. But in 1960, The Dawood Group that was wellreputed name in Pakistan bought company. Dawood Lawrencepur Limited the parent company is a public limited company incorporated in 2004 as a result of scheme of arrangement for amalgamation in terms of provision of section 584 to 287 of the Companies Ordinance, 1984 between Dawood cotton Mills Limited, Dilon Limited, Burewala Textile Mills Limited, Lawrencepur Woollen and Textile Mills Limited and members of the said companies. The shares of the parent company are listed on the Karachi and Lahore stock exchanges. The parent company is principally engaged in the business of manufacture and sale of yarns and fabrics made from natural and man-made fibers and blends thereof. The registered of the parent company is situated at 35-A, shahrah-e-Abdul Hameed Bin Baadees (Empress Road), Lahore. During the year 2008 the parent company, due to continuous losses of its Dawoodabad unit located at Burewala, district vehari, has suspended its operations. The Dawood Lawrencepur Limited has a wholly owned subsidiary namely Tenaga Generasi limited the Subsidiary Company. The Subsidiary Company was incorporated in 2005 as a public limited company under the Companies Ordinance, 1984 for a special purpose for setting up and running up a wind energy farm as an independent power producer. The Subsidiary Company is in the process of acquiring its resources and commercial production has not yet commenced. The registered office of the Subsidiary Company is situated at Dawood centre, M.T.Khan road, Karachi.

Nature of the organization Dawood Lawrencepur Limited is manufacturing of high class fabrics and sales yarn as well. DLL has monopoly in the business in terms of complete set up fabrics production i.e. from raw material to finished goods. They have computerized machinery but are old one as well. Dawood Lawrencepur is the first company in Pakistan to install the user tester 5(UT5), which the latest technological system for yarn quality inspection. The system test yarn for certain parameter such as openness, hairiness, count and imperfection. If not only operates at a very high speed but also provides remedial action to control, eliminate and prevent and woven fabrics finishing mechanism by deco fast and an electronic selvedge jacquard machine. Company is manufacturing woolen and yarn, and fabrics. Raw material is imported form Australia, Newzi Land, South Africa which processed in India and honk kong. Man made raw material is purchased from Germany. Dyes as well as chemical are purchased from Germany and Switzerland. Number of looms is 20 and 5656 spindles as well. The principle properties of our products are: Good barrier to moisture. Excellent transparent gloss. Good printability. Good seal ability.

Business volume (Total number of stock, shares, bonds/commodities

Authorized Share Capital


In 2009 in 2008 550,000,000 466,860,550

55,000,000 (2008:55,000,000) Ordinary shares of Rs.10/-each Issued, subscribed & paid up capital

550,000,000 513,546,600

Issued, Subscribed and Paid up Capital 2009 2008 Number 2009 Rupees 2008 Rupees

2,204,002 12,805,118 36,345,540 51, 354,660

2,204,002 Ordinary shares of Rs.10/- each fully paid 12,805,118 Ordinary shares of Rs.10/- each issued for consideration other than cash 31,676,935 46,686,055 Ordinary shares of Rs.10/- each fully paid as bonus shares

22,040,020

22,040,020

128,051,180 128,051,180 363,455,400 316,769,350 513,546,600 466,860,550

Movement is share capital during the year 46,686,055(200838,583,516) Ordinary shares of Rs.10/- each fully paid up Issued 4,668,605(20088,102,539) Ordinary shares of Rs.10/- each fully paid bonus shares Closing Balance Total Business volume Future contracts planned The company is in the process of integrating its various operations which includes the consolidation of its fabric and garments operations. Necessary statutory and legal formalities are being complied with. With this consolidation, it is expected that continuing operations of companys woolen fabric and garments unit will show improved results. The Company is implementing its vision 2030 strategy to strengthen its ability to deliver sustained, long term results, focused on these areas. Meeting the needs of people today. Bringing secure and reliable energy to our country. Meeting a growing need for electricity. A culture of continuous improvement. In ways that ensure a sustainable future. The acute power shortage has resulted in closure of a large number of industrial units causing large scale joblessness. Also in view of the escalating gas and oil prices we need to utilize alternative means of generating electricity to overcome this shortage.
513,546,600 466,860,550 46,686,050 81,025,390 466,860,550 385,835,160

513,546,600

On the front of establishment of wind energy farm of 50 MW, the company is making steady progress. The company is in negotiations with wind turbine manufactures and it is expected that soon we will be able to finalize the contract with WTG manufacturers. With the disposal of closed down plant and machinery, the company will be in possession of sufficient initial funds to further accelerate the progress on the wind energy side. Product lines Here we look the most popular qualities which are used by the customers produced by DLL. It was observed during the period of internship at DLL that there are three types of orders which are placed namely: I) Market Orders II) Contract Orders III) Garment Orders I) Market Orders Here we talk about the Market Order firstly. Market Orders are shown by the word M with the Order No and year. For instance the most popular order is M08-009 Quality Lyla Plain. These types of orders are placed by the Marketing Department taken from the market orders. II) Contract Orders Contract Orders are shown by the word C along with Order No and Year. For Example, the most popular order during the year 2009-10 is C05-009 taken from Pakistan Air Force. This type of order is directly launched by the Contractor. III) Garment Orders This type of order is presented by the word G along with Order No and Year. Garment Orders are basically taken from the customer by the marketing department which is in Lahore at Empress Road. 6

Product Description Lawrencepur has earned its reputation through years of consistent service and distinctive quality. Here we examine those qualities which are sold frequently by the DLLs Customers. Following qualities shows the product line of Dawood Lawrencepur Limited: Worsted Tweed Sup. Serge Panama Tropical-P Tropical-D Altaan Lyla-P Viena Suiting Lyla-D Serge Worsted Flannel Winter Suiting Vicuna Centurion Sup. Vicuna Trouser AF-3 Summer Supree PIA Lyla Type: 12107 Type: 12113 Cool Wool Suiting Gaberdine Bellini Suiting 7

Rossini Suiting Ebony Suiting Classic Platinum Suiting Classic Ivory Suiting Siena Suiting Sup. Lt Wt Suiting Soltine Khaki Magna Sup Lt Wt Suiting Valencia Suiting Sallar Shundur Saxony Suiting Competitors Dawood Lawrencepur Mill is the only one producer of this high quality Woollen fabric so; they have monopoly in the Pakistani industry. Many textile firms are working like Alkaram textile mill and Kohinoor Textile Mills but no one is working on DLLs kind of products.

Organizational Structure Organizational Hierarchy chart


DAWOOD LAWRENCEPUR LIMITED LAWRENCEPUR UNIT EXISTING ORGANIZATION POSITION OF MILLS

Aman -ul-Haque Mills Manager

Ghulam Khan Conf. Secy

Vacant Quality Assurance Manager

Mr.M.Sarwar Security/Stores Officer

M.Aslam Choudhry Porsonnel Manager

Abdul Rauf Dy .Manager Fabric Production/ Finishing

Muhammad Niaz DY.Manager Yarn Production

M.Zahid Dy.Supdt. Designing

M.Afzal Supdt. Dyeing

Farooq Ahmed Supvr. F.C.Insp.

Khalid U. Mahmood Dy.Manager P.Plng

Jahan Dad Khan Dy.Supdt. Qty Control Fazal -e-Jamil Supvr. Q.C

Engineering Atta Ullah Khan T/Supvr. Q.C

M.Aslam Choudhry Personnel M anager

Vacant D.M.E Workshop

Khalil Ahmad Utilities Engr.

Arshad Mahhmood Sr.Electrical Eng ineer

M.Nadeem Qamar Sr.Electronic Engineer /ISO G.Coord

Arshad Mahmood Dar Sr.Industrial Relations Officer

Tahir Mahmood Conf. Secretary

Haq Nawaz Sr.Supvr Electriv Nasurullah Khan Sr.Supervisor Civil

M.Adil Sr.Supvr Air-Cond Inayat ur Rab Supvr Air-Cond

M.Ejaz.Supvr Electronic

Vacant Sup. I.S.O. Shah Abdul Qasir Sr.Supvr. Time Office Hafiz M. Tahir Khateeb Colony Mosque Miss Nosheen Sarfraz Supvr.Admin

DAWOOD LAWRENCEPUR LIMITED LAWRENCEPUR UNIT EXISTING ORGANIZATION POSITION OF MILLS

Aman-ul-Haque Mills Manager

Ghulam Khan Conf. Secy

Vacant Quality Assurance Manager

Mr.M.Sarwar Security/Stores Officer

M.Aslam Choudhry Porsonnel Manager

Abdul Rauf Dy .Manager Fabric Production/ Finishing

Muhammad Niaz DY.Manager Yarn Production

M.Zahid Dy.Supdt. Designing

M.Afzal Supdt. Dyeing

Farooq Ahmed Supvr. F.C.Insp.

Khalid U. Mahmood Dy.Manager P.Plng

Jahan Dad Khan Dy.Supdt. Qty Control Fazal-e-Jamil Supvr. Q.C

Engineering Atta Ullah Khan T/Supvr. Q.C

M.Aslam Choudhry Personnel Manager

Vacant D.M.E Workshop

Khalil Ahmad Utilities Engr.

Arshad Mahhmood Sr.Electrical Engineer

M.Nadeem Qamar Sr.Electronic Engineer /ISO G.Coord

Arshad Mahmood Dar Sr.Industrial Relations Officer

Tahir Mahmood Conf. Secretary

Haq Nawaz Sr.Supvr Electriv Nasurullah Khan Sr.Supervisor Civil

M.Adil Sr.Supvr Air-Cond Inayat ur Rab Supvr Air-Cond

M.Ejaz.Supvr Electronic

Vacant Sup. I.S.O. Shah Abdul Qasir Sr.Supvr. Time Office Hafiz M. Tahir Khateeb Colony Mosque Miss Nosheen Sarfraz Supvr.Admin

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DAWOOD LAWRENCEPUR LIMITED LAWRENCEPUR UNIT EXISITING ORGANIZATION POSITION OF THE OFFICERS WHO ARE REPORTING TO SALES AND ACCOUNTS (H.O) ACCOUNTS
Khalid U.Mehmood DY.Manager Accounts

Sabir Saleem Cash Officer

Mukhtar Ahmed A.O.

Riaz Khan I/C Wages

M.Afzal Sr.Acctt.

Kala Khan Tariq Asstt Wages Officer

Imdad h.Shah I/C Costing

Shaukat Khan Store Acctt.

Arif Hussain Acctt Wages

Tahir Anjum Acctt Wages

Yousaf Ali Akhtar Sr.I/C Excise

SECONDS SHOP/LAWRENCIA

Vacant Dy.Sales Officer M-3

Muhammad Javeed Supervisor

Ansar Ahmed Supervisor

FINISHED GOODS STORE


M.Iqbal Bhatti Sr.Supervisor

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Number of employees Employees of Lawrencepur unit including management and non-management staff is about 562.In which the management staff is 59 and remaining persons are non-management staff excluding Head Office and Procurement and Marketing staff. The total numbers of employees as at year 2007 end were 722 of Dawood Lawrencepur Limited. Main offices Head office Dawood Centre M.T. Khan Road, Karachi 75530-Pakistan Chairman Office Chief Executive Office Director HR Office General Manager HR Office Manager HR Office Chief Finance Office Accounts Manager Director Marketing Office General Manager Marketing Office Manager Marketing Office

Registered Office 35-A, Empress Road, Lahore 54000, Pakistan

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General Manager Procurement Procurement office (local) Procurement office (import)

Main Offices at Plant Mills Manager Office Personnel Manager Office Deputy Manager Accounts Office Senior Industrial Relation Office Labor Accounts Office Excise Office Production Planning Office Designing Office Admin Office Conference Room

Introduction of all departments Production Planning Office The production planning office is often called PPO. This department plays a radical roll in DLL. After receiving the production orders from marketing department, the PPO starts its work regarding the estimate of Raw material and similarly production order is prepared for dying, weaving, finishing. And the copy of production order is forwarded to different department such as F.C.I., Dyeing F.G store etc. R & D DEPARTMENT / DESIGNING OFFICE Designing department is called The Sample Room DawoodPur. The main function of this office is to verify the sample Design as required by customer/Party. When production order is being placed it is checked by Designing Office. Accounts Department Accounts department of DLL (plant) can be categorized as under:

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i. ii. iii. iv.

Cash Office Wages Office Store Accounts Costing

Cash Office Cash office is responsible for arrangement if funds which need to run the company salary /wages, plants Local Purchases etc. The record of daily sales received from Lawrencia and 2nd Shop are maintained in cash office. Transfer of funds from Head Office is the routine activity of this dept. Bank Book and Cash Book is reconciled at the end of each month. Wages Office Salary of management staff and wages for workers are made by this department. The salary of management is finalized at the 20th of each month and is paid to office on every 1st of each month, where as non-management staff (i.e. ministerial staff and clerk, peons, sweepers, drivers etc.) is paid wages on 10th of every month as per agreement with collective Bargaining Agents (C.B.A). All the management staff takes their salaries through their bank account i.e. Habib Bank situated with Dawood Lawrencepur Limited. Salary and wages of the permanent, on contract, daily wages etc are prepared here. Loans, Bonus, Workers participation fund, Profit and overtime are prepared by the same department. Over time is distributed at the end of each week. Store Accounts Store accounts department do the following functions: 1. Quantitative statement of raw material on monthly bases 2. Preparing the Estimated Annual Budget for the year 3. Aging of stores 4. Valuation of plant Local Purchase 5. Maintaining ledgers(item 5000 approximately) 6. Maintaining Journal 14

7. Checking of Memo against advances and forward to Head Office Karachi on routine bases. 8. Main Items Consumed during the month Costing Office Costing is responsible for preparation of production Data for the every month of the year. Also this department prepares the summary for government such as federal statistical department every month. These data contains the following basic information: i. ii. iii. How much finished goods i.e. fabrics & yarn were produced during the month? How many shifts were used to make the subjected fabrics? What are the number of management and non management staff whose worked?

Also this department costing the material such dyes, chemical on routing bases. Production summaries are being sent to Head Office Karachi as well as Cost Officer Lahore Office for further necessary action. Lahore Office / Administrations Administration plays a significant roll in the progress of Company. It importance is most important then others are such as Finance, marketing, Production etc because internal and external environmental depend on the companys administration. Finished Cloth Inspection This department just inspects the ready fabrics. Here in section, fabrics are categorized in the following three grades: Grade A Grade B Grade C By the top management there is 20% allowed for substandard fabrics i.e. Grade B and Grade C. both these grades are the substandard fabrics.

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Usually, grade A is for the sales purpose. Remaining two grades i.e. Grade B and Grade C are the sub standard fabrics and sale out in the outlet of the company.

Goods Receiving Section (G.R.S) As its name suggests G.R.S basically receives the goods for production purpose. Raw Material, Chemical, Dyes, Oil & Lubricants, Stationery Spares, and so many others. G.R.S firstly prepares the inspection Note after receiving the goods for concerned department. The department has an authority to accept or reject. But almost all the goods are accepted by the concerned department. As Inspection Note of the goods is marked by the word OK then goods are delivered to General Store for further documentation. General Store The function of General Store is asunder: Prepare the Purchase Indent (P.I) from purchase Requisition (P.R) two items in a moth and forward to Head Office Karachi for approval from Chief Executive Office (CEO). Goods received from G.R.S along with G.N.D (Goods Delivery Note) Keep the goods on proper location. Prepare the G.R.N (Goods Received Note) 4 copies (1 copy for Procurement- 2 Issuance of goods to the department on Store Requisition Slip (S.R.S). Prepare the inventory of Store at the end of each financial year i.e.(July June) of

copies for Accounts Department 1 copy for Office record)

every year. Boiler House Boiler House provides the services to the production department regarding the gas and water supplies. Further more it gives the services to home appliances.

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Electrical Work Shop Electrical work shop provides the services regarding the electricity. Any complaints regarding the electricity are deal and remove the defect. Quality Control Working of Quality Control is to verify the raw material quality. The importance of this department is highly valuable because of quality control. I.S.O Office I.S.O stands for International Standardization for Organization. Todays I.S.O affiliation company has improved the quality of product as well as performance of the organization. DLL is ISO 9000-2000 certified company. I.S.O Group Coordinator arranges an audit at every month. Also conduct a meeting on weakly basis to review the agenda. By implementation of I.S.O, DLL has improved his quality product. By this DLL is a pioneer in the textile sector of the country. Civil Department Civil department provides the service of arranging the Daily Wages Workers and supply them to those department which needed. Similarly it looks after the entire Mills as well as the Mills colony. Arranging for wooden Material etc. is done by this department. Comments on Organizational structure Organizational structure is highly centralized because all decisions are made by high level management. Due to communication gap employees cant share their ideas with management. Internship program Introduction of the branch where you did your internship I was honored to work in Dawood Lawrencepur Limited, Dawoodpur District Attock.

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The company is 70 Kilometers away form Islamabad. The Punjab Cooperative Society constructed the company in 1952. In 1954 Cooperative Society started business on trial bases. And the same year on commercial bases business was started. Cooperative Society led the company form 1954 to 1960. But in 1960, The Dawood Group that was wellreputed name in Pakistan bought company. It is working as production unit of Dawood Lawrencepur Limited. It is public limited company. The shares of the company are listed on the Karachi and Lahore stock exchanges. Company is manufacturing high quality woolen yarn, and fabrics. Raw material is imported form Australia, Newzi Land, South Africa which processed in India and honk kong. Man made raw material is purchased from Germany. Dyes as well as chemical are purchased from Germany and Switzerland. Internship duration The duration of my internship at Lawrencepur unit as an internee was from 16th April, 2009 to 13th June, 2009. Training departments As I have mentioned earlier the Lawrencepur units HR department is working in their head office Karachi so I got training in mainly two departments Production paining Office Personal/Ad min Department

In PPO I worked from 16-04-2009 to 07-05-2009 In Admin Office I worked from 08-05-2009 to 29-05-2009 In last two weeks of my internship, from 30-05-2009 to 13-06-2009 I visited almost all the production departments of the Lawrencepur unit to see actually how the unit is producing high quality fabric and the workers are working . It was a real different and outstanding experience to see each process in the production of that final product.

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Training program Work Description of the departments Production Planning Department Head of production planning department Deputy planning officer Senior Supervisor production planning. The production planning department The production planning department is managed by head of production planning department. The head of production planning department reports functionally to mills manager. All the expected orders at inquiry stage are followed; unexpected inquiry/orders are in pending record/file till reply from the customers. Feedback is provided to the customer through head of production planning department. All the orders received at plant are worked out for concerned department i.e., process wise orders and got approved from the Mills Manager. Head of production planning department also informs to the customer for orders position\ orders in-hand for required order from marketing for smooth operation of mills. Head of production planning department also works out projected annual raw material requirement based on annual projected sales received from customer. After working out quality wise requirement for projected sales along with schedule of availability at plant are sent to G.M procurement for procurement and supply. Job description Head of production planning department Head of production planning department carries out planning for raw material, formulating and executing of contract review and market production orders. He assigns responsibilities

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to the planning officer and senior supervisor production planning. The planning officer looks after the duty of head of Head of production planning department in his absence. Head of production planning department is responsible for communication of quality policy to all production planning personnel. He also ensures that the concerned personnel properly understand the job responsibilities. Deputy planning officer To assist head of production planning department in carrying out planning for raw material, formulating and executing of contract review and market production orders and day- to-day activities of production planning department. She looks after the production planning department in the absence of head of production planning department. Senior Supervisor production planning He assists deputy planning officer for day-to-day activities of the production planning department. Also look after production planning department in the absence of deputy planning officer. Daily Stock of cloth/ Shawls/ Blankets as on daily wise made entries Dispatched dates of finished goods consignment No, Vehicle No are daily entered in M.S. Excel sheet for maintenance of records. Human Resource Department of the Organization Human Resource Department is not directly concerns with the customer satisfaction but its policies are the integral part of the organizations achievement plans and its policies ensure the right person to be hired, for the right and specified job, trained, evaluated, giving incentives and hence by appointing right persons in the different functional departments of the company. So Human Resource Department helps in the proper functioning of the departments and if there are complaints against the products of the company or customers are not satisfied with the products, it takes measures in order to determine the job

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specifications, hiring of the appropriate person or conducting the refreshing coursed etc. hence leading towards goals achievement. The Human Resource department of the organization operates in an auxiliary, advisory, or facilitative relationship to other departments in the organization. Any staff unit, whether it be personnel or otherwise, exists to help the line effectively. It has been created in the first place to take advantage of specialized talent and knowledge. Responsibilities The Responsibilities of H.R Department of the organization generally are as following: 1. Policy Making 2. Advice 3. Service 4. Control Policy Making The executive in charge of the H.R Department is the individual most actively involved in policy revision to cover recurring problem or to prevent anticipated problems. Ordinarily these are proposed to the General Manager of the company, and it is up to the latters authority that the policy is actually issued. When proposing a new or revised policy the personnel director analyze problem that have occurred in the past, survey other companies to determine how they handle similar situations, discuss the matter with colleagues and subordinates and give due consideration to prevailing philosophy in the organization. Advice A major portion of the activities of those engaged in staff personnel work is in the nature of counsel and advice to line manager.

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Countless examples can be given. A shop foreman may be confronted with a grievance over distribution of overtime. Another foreman may have the problem employee who he feels should be disciplined or even suspended. At the time of the annual performance evaluation of all personnel for their work during the past year, the operating manager plays key role in advising operating manager on the administration of the program. An apparent concerted slowly down may occur in the department. It may have been instituted by the union or retaliation for the cutting of piece rates the week before. How should production supervision handle this situation? The H.R. Managers and their staff are expected to be fully familiar with H.R. policy, the labor agreement, past experience and the needs and welfare of both the company and the employees in order to develop a sound solution. Successful personnel specialists are people centered. They feel sensitive wants and motives of other people. At the same time they are continually aware of their obligation to preserve the structure and functioning of the organization. In fact, this is really the essence of H.R. management. Management seeks to direct and coordinate the efforts of the people that the goals of the organization are achieved while at the same time providing need satisfactions for the members of that organization. Service The service responsibilities of the H.R. department are obvious when one examines such things; as employment, training, and benefits functions. The tasks of recruiting, interviewing and testing job applicants are performed in the H.R. Department Training programs are planned, organized and staffed through the H.R. Department. H.R. Department must see that adequate instructional materials and facilities are available. Once pension and insurance programs have been setup, all claims are dealt through the H.R. Department. The maintenance of adequate employees records is a service function that permeates all functional specialties within the personnel field.

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Control The H.R. Department carries our important control functions. It monitors the performance of line department and other staff departments to insure that they conform to established personnel policy, procedures, and practices. The control function of the personnel department is quite comparable to the activities of a quality control group that measures product variables to insure conformance to engineering specifications or to the activities of the auditing staff that inspects accounting records to ascertain conformance with prescribed standards. General The H.R. Department of the organization also bears the responsibilities of coordination between the other departments of the organization in addition to the above. It manages the people the most vital of all resources in work place and makes an important practical difference in terms of three key organizational outcomes: (a) Productivity, (b) quality of Work and (c) Profit. Description of the tasks I was not assigned any kind of specific project or task. I was there to observe and perform the daily tasks in their guidance. I performed all those tasks which they assigned me in their day to day work. In PPO I used to Record daily dispatched finished goods in M.S Excel for record maintenance. Receive orders from the market. Inquiring orders by sending working sheets to all the production departments to confirm that either we can produce this order within the given time or not. Receive confirmations from production departments. Confirmation of the order to market or customer. Arrange weekly meeting to discuss current production of the orders.

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During my training I performed and observed Personnel and senior IRO department of the Lawrencepur unit; Personnel manager/senior industrial relation officer and staff maintain personal files of all employees of the unit and also maintain leave record for all employees including officers. Daily attendance report made in time office department is received in personal and senior IRO department after checking total month attendance it is sent to deputy manager account for payment of the salary on every 10th of the month. Deputy Manager Account is responsible for payment to all workers and ministerial staff on 10th of every month and payments to all officers are made on every 1st of the month through banks. Requirement of employees from heads of departments is made to the personnel and SIRO. As a result they arrange interviews, tests time to time according the requirement of the departments. Any worker default/made mistake in any department during work or in workplace, head of department reports to the personnel /S IRO department for action. Personnel/SIRO makes arrangement; issues show cause notice regarding complaint by the head of department against the employee and also conduct enquiry against the accused person. Three types of leaves are maintained in Lawrencepur unit under Personnel and senior IRO department: i) ii) Casual leave (10 days with pay leave given to all employees in the calendar year. Earned leave (14 days annual leave with pay given to all workers during the calendar year/ 30 days with pay leave given to ministerial staff and all officers. iii) Medical leave (16 days half pay leaves given to workers/ ministerial staff and 15 days with pay leave given to all officers during the calendar.
In the end of my internship program I visited almost all the production departments:

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Top Store Raw Material issued to Yarn Stores and Top Stores from General Stores. Raw material in the form of Polyesters, Wool Tops, Acrylic Tops, Yarn etc. are purchased from different countries of the world and the national market. These departments are playing vital roll in manufacturing of fabrics: Yarn Store Yarn Store tells about the yarn which is used in the production of fabrics. DLL is producing the yarn for its fabrics. Once yarn use as a raw material of fabrics but as a product for sale to customer. Every year DLL take the order of the yarn for manufacturing Dyeing The activity of this department is to receive and then dye of raw material which required by Production Planning Office. Dyed raw material is being transferred to next department i.e. Back Wash for further necessary action. Spinning/ Twisting In this department, raw material is twisted and shifted to spinning department. There are many ring machines are installed. There are many workers who works 24 hours in three categories i.e. shift A, B, C, and general shift. Weaving Weaving department plays a vital roll in whole manufacturing. Here are many weavers are works who have a dynamic roll in the process activities. Mending Here the finished product is mending for completion of finished product.

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Finishing In finishing department, there are two types of activities are held. First fabrics are wet and second are dry is the last stage of the manufacturing the fabrics. Here in this department, very costly imported machines i.e. dacatizing machine, decofast etc. which are completely computerized to control the production in a symmetric manner.

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Structure of the HR Department Department hierarchy

Personnel

Sr. Industrial Relation Officer

Conference Secretary

Fair Price Shop 1 Clerk, 1 Worker

Dispensary 1 Dispenser

Officer Club 3 Workers

Time Office 1 Officer, 2 Clerks

Tel. Exchange 1 Officer

Labor Office 3 Clerks

Sanitation 8 Workers

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Number of employees under HR department No of total employees working under personnel department are 24 in Lawrencepur (unit of Dawood Lawrencepur Limited. Four of them are officers of different grades. Ministerial staff contains of six persons. Workers under this department are thirteen. A dispenser also works under this department. Sub-department under HR department As I have mentioned earlier in the report that the companys HR department is working in its Head Office Karachi. So we can say that herein Lawrencepur unit Personnel department is working as a sub-department of HR department. Under this Personnel department many sub-departments are working like: Industrial Relation Office Labor office Time office Fair Price Shop Tel. Exchange Dispensary Sanitation Officer Club

Functions of HR Department Human resource planning and forecasting HRP process Human Resource Management Process refers to the activities necessary for staffing the organization and sustaining high employee performance. Illustration below states the key components of an organizations Human Resource Management Process. These consist of eight activities necessary for staffing the organization and sustaining high employ performance. The first three activities ensure that competent persons are identified and

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selected and the next two activities involve providing employees with upto-date knowledge and skills. The final three activities entail making sure that the organization

retains competent and highperforming employees who are capable of sustaining high performance. It is a new function that has been started by FIRM in recent years in human resource planning. Human resource planning is the process by which a firm insures that it has the right number of qualified persons available at the proper times, programming jobs that are useful to the organization, and which provide satisfaction for the individuals involved. The principal elements involve in human resources planning are as follows: Goals and plans of organization; Current human resource situation including skills inventory; Human resource forecast including comparison of projected future demand for employees with projected supply; Designing programs to implement the plans;

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Forecasting HR requirements The purpose of human resource forecasting is to estimate labor requirements at some future time period. Such forecasts are of two types: (1) The external and internal supply of labor and (2) The aggregate external and internal demand for labor. Each type is considered separately because each rests on a different set of assumptions and depends on a different set of variables. Internal supply forecasts relate to conditions inside the organization, such as the age distribution of the workforce, terminations, retirements, and new hires within job classes. Both internal and external demand forecasts, on the other hand, depend primarily on the behavior of some business factors (e.g. employee enrollments, projected construction, products volume) to which HR needs can be related. Unlike internal and external supply forecasts, demand forecasts are subject to many uncertainties like in domestic or worldwide economic conditions, in technology, and in consumer behavior etc. After they have assessed both current capabilities and future needs, managers are able to estimate HR shortagesboth in number and in typeand to highlight areas in which the organization will be understaffed or overstaffed. With this information, managers are ready to proceed to the next step in the HRM process Methods to forecast HR needs Forecasting future work requirements involves identifying the type of work that will need to be performed to meet future organizational goals, as well as how it will be performed. Inputs to identifying future work requirements for the organization include:

Organizational business plans and vision; and Current workforce profile (including competency levels, composition and numbers).

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Techniques for forecasting future workforce needs include: Techniques Focus Group Small group facilitated discussion enables anecdotal evidence to be obtained Survey Employee surveys of intentions can help predict likely outcomes and identify impending changes Delphi technique Draws together subject matter experts and engages them in assessing likely impacts and their assessments of future directions and trends Force field analysis Small group brainstorm force field analysis to identify forces that promote and resist change Scenario planning Narrative statements of possible futures for the organization Lack of clarity and ambiguity of future Significant external barriers present Specialized area, to obtain senior input When to use highly specialized fields, to gain information quickly Best conducted on a regular basis to obtain trends, high reliability

Employees recruitment & selection The recruitment means the process of locating, identifying, and attracting capable applicants. Recruitment process is the first step towards creating the competitive strength and the strategic advantage for the company. Selection Selection is an exercise in prediction. It seeks to predict which applicants will be successful if hired.

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Sources of candidates Companies can use two types of sources to hire the people. Internal sources The employees are transferred from one department to another according to their efficiency and experience. The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. Upgrading of present employees takes place according to their performance. Retired and even working employees are used as employee referral in the company when. In this way, Moreover, qualified people may be reached at practically no cost. Employee referral programs may be perceived as discriminatory in practice, therefore, caution should also be taken to ensure that a referral program does not result in discriminatory hiring practices. External sources The external recruitment sources bring job candidates from the external environment using different techniques. Generally used external recruiting source is advertising through radio, television, and newspapers. Through advertising, we are selective and indicate clearly the nature of a job and required qualifications. Advertising also enables to target minorities through minorityoriented media.

Employment selection process The first step in the completion of the employment is applicants resume. Received applications are initially screened to determine whether an applicant meets the minimum

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qualifications for the position as outlined in the Job Announcement. Applications meeting the minimum qualifications are then reviewed by a Human Resources Analyst and a subject matter expert to determine who is to be invited to continue in the examination process. Qualified applicants in terms of relevant training and experience will be invited to continue in the examination process. Written tests are designed to determine the level of technical and/or analytical abilities associated with the particular position for which candidates have applied. If candidates receive a passing score they will be invited to continue in the examination process. Once the List of Eligible Candidates is established it is sent to the Departments that are hiring to fill a current vacancy. The HR Department Head is responsible for setting up Selection Interviews. He/she may interview anyone on the list, since all persons referred to the department are qualified. The HR Department Head will be looking for the candidate with the best qualifications for their particular position. Then the candidates short listed by the department are finally approved by the executive of concerned departments or units. Employment is offered in the form of an appointment letter mentioning the post, the rank, the salary grade, the date by which the candidate should join and other terms and conditions in brief. Training & development Training need assessment On-the-job training and coaching are performed by the line supervisor. It is the responsibility of the personnel industrial relations group to determine training needs in cooperation with the line management. Once the needs are established, the personnel training specialists design a program to accomplish the desired results. In DLL all workers are employed for one year training program on temporary base. Then at the completion of training program of the mentioned period employees assessment takes place. After assessing employees performance and behavior at work place selection is accomplished as per requirement.

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This in turns helps in Increased productivity. Reduced employee turnover. Increased efficiency resulting in financial gains. Decreased need for supervision. Increased knowledge and skill Solving organizational problem

Employee development Recruiting the best, creating an environment that values merit across the entire organization, improving human resource policies, enhancing monetary benefits, organizing social events, providing training and development opportunities and initiating human resources planning, including career and succession planning, are the major objectives or HRD. Some things that the employee should consider in their own development include seeking a variety of assignments, tackling tough problems and asking for feedback. When people develop confidence, integrity, emotionally, they automatically become more proactive, solutions-focused, responsive, etc., which across a whole team has a cumulative effect. A number of benefits that the firm has gained by conducting Employee Development: Increased job satisfaction and morale among employees Increased employee motivation Increased efficiencies in processes, resulting in financial gain Increased capacity to adopt new technologies and methods Increased innovation in strategies and products Reduced employee turnover Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!) Risk management, e.g., training about sexual harassment, diversity training 34

Performance management A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well as to provide documentation to support those decisions. Setting performance standards & expectations Managers need to know whether their employees are performing their jobs efficiently and effectively or whether there is need improvement. Evaluating employee performance is part of a performance management system, which is a process of establishing performance standards and appraising employee performance. In Lawrencepur unit I observed that performance is measured on the standard of how accurate is the work because the company do not compromise on the quality of their product at any cost. Moreover the quality and speed of work is measured as I have seen in the mending department its been checked that a worker has worked on how many pieces in his/her duty hours. Performance reports Performance reports are written monthly by the head of each department in Lawrencepur. These reports are maintained separately in each individuals file by the HR department. In the end of each year performance evaluation forms are filled by the head of each department about their employees and forwarded to the head office. On the base of these reports employees are promoted.

Employee compensation & benefits Compensation & benefits offered by the company In case any employee passes away during the service DLL pays all his dues i.e.

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Gratuity (one salary against every one year service) Payment of all the worked days and balance leave payment. Group insurance as per DLL rules Compensation from worker welfare board DLL pay 6% contribution to employee old age benefits institute regarding pension of all employees DLL pay bonus to all workers and ministerial staff at 36% of the total salary received by them during the year DLL pay worker profit participation fund at 5% of the total profit earned by the company as per government rules and regulation of WPPF. DLL pay overtime to the workers as well

During the service

The above noted benefits are not paid to the officers. They are paid confidential salaries and in case of death during the service they are paid sufficient group insurance. Medical Dispensary provides the services to the officers regarding their medical problems. In a week there are two medical trips are going to Attock city for medical treatment. Also first aid is provided in this dispensary. The secured workers are medically treated in the Social Security Hospital.

Organizational career management Employee job changes A promotion is a move up the organizational ladder; job rotation and transfers are lateral moves; demotions are downward moves; and layoffs move employees out. Layoffs, in contrast to dismissals, are terminations, sometimes temporary, required for business needs

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unrelated to worker behavior or performance. All of these changes bring about shifts in status, and often in pay, of the employees involved. Job changes with the organization Internal Moves in the Organization

Promotions

Transfers, Relocations

Layoffs, Retirements, Resignations

Demotions

Promotion

The permanent movement of a staff member from a position in one job class to a position in another job class of increased responsibility or complexity of duties and in a higher salary range.

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Any employee is promoted on yearly basis in DLL after recommendation received from head of department as per company policy. Transfer

The permanent lateral movement of a staff member from one position to another position in the same or another job class assigned to the same salary range. In DLL transfers takes place if any of the employee requests for transfer to the other department through department head or if any department requires some one from other department. Demotion

The permanent movement of a staff member from one position in one job class to a position in another job class of decreased responsibility or complexity of duties and in a lower salary range. DLL tries its best to do not demote any one but if any charge is confirmed on some one then company is forced to demote the person. Separations Layoff

Layoff is the temporary suspension or permanent termination of employment of an employee. DLL had never temporarily discharged any of its employees. Termination

Termination is a traumatic experience. Egos are shattered, and employees may become bitter and angry. Termination from DLL takes place due to the following reasons. As a result of disciplinary action for serious work performance problems.

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During the newly hired period of employment for failure to meet job performance requirements. An enquiry committee will held meetings and then they take initiative, firstly they gave a memo or warning as in which they Review process after the 90-day probationary period granted for correction and Adjustment after receiving the first warning.

When discipline procedures do not accomplish correction of the work performance problem then an employee is terminated. Resignation

In DLL an employee who voluntarily wants to resign has to notify his/her supervisor before one month or 24 hours. If employee applies resignation on one moth notice period company do not deduct any salary. If applies on 24hour notice company deducts one moth salary from his dues. All other dues are paid. Retirement

All employees of DLL will be retired at an age of 60. Company pays all the dues of the retired person with one month extra salary. Labor management relations The principal tasks involved in handling labor relations are contract negotiation, contract interpretation and administration, and grievance handling. The H.R. Department plays very significant role in labor-management relations. The director of industrial relation usually serves as a key member of the bargaining team often acting a chief management spokesman. In operating on a day-to-day basis under the terms of the labor agreement, line supervision often finds frequently occasion to consult the H.R. Department regarding such matters like allocation of over time, handling of transfers and layoffs, and the application of contract work rules.

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Critical analysis Among all the resources possessed by the organizations it is only the Manpower or the Human resources that create the real difference. Because all organizations can have the same technology, they can possess same type of financial resources, same sort of raw material can be used to produce the goods and services but the organizational source that can really create the difference is workforce of the organization. Therefore they are the main sources of innovation creativity in the organizations that can be used as a competitive advantage. The Human Resource management process and the department regulations, policies and structures etc; all techniques are the ones which prevail and are practiced at the head office of Dawood Lawrencepur Limited. Here the Personnel department is working as HR department. DLLs senior management cant focus on all activities of a business and the competencies required undertaking them. So the goal of management is to focus attention on competencies that really effect competitive advantage. The company is lucky in the sense that the demand for its product is very high but unluckily the supply is very low. So demand exceeds supply. The company is producing high quality product not avalible in countrys local market because of the lack of production in the plant. The reason behind this issue is that it seems Right person is not at right job and also some internal and external problems like load shedding of electricity and gas. Due to load shedding of electricity the orders are not completed at right due to which customer loyalty is affected. Instead company has monopoly in the market because no other company is producing such high quality product. So the customers are bound to buy DLLs product.

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Lawernancepur branch is not at transition stage but still it has weaknesses in some areas like: due to over time the cost of their product has become very high. Due to these kinds of reasons operating profit has decreased by 38% in recent years. So DLL is decreasing the number of its employees as they cant face the burden of salaries. There is a communication gap between employees and management as mentioned earlier DLLs head office is in Karachi and plant is in Attock-Communication and realization problems occur between the plant management and the head office management. Lack of communication effects the production. Management needs unity and coordination. Payment package in DLL is not good so workers are dissatisfied. Lack of hiring young employees new ideas for production efficiently are not avalible. If hired young people, reasonable pays are not offered due to the reason employees leave from the job when ever they get opportunity. In short, the practical implementation of the theoretical concepts is not partially but not completely may be as per rules of the company or requirement of the company. SWOT Analysis of DLL SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. We can say the combined external and internal analyses are called the SWOT Analysis. Based on the SWOT analysis, managers of DLL are identifying a strategic niche that the organization might exploit. Strengths Strength of DLL, we observed that it has a technical expertise, skilled employees, experience managers etc. as well as capabilities in performing the different functional activates such as marketing, manufacturing, information system, human resource management etc. There are specialized engineers such as Electrical Engineer, Mechanical Engineer, Quality Assurance Manger, and Dyeing Master etc. These specialists are playing vital role in DLL production.

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Following are the key strengths of DLL:

Pension, Gratuity, Annual Leaves, Medical Leaves, Causal Leaves etc. 2100 Kanal Land Free 1) Accommodation (Mills Colony) 2) Utility (Gas, Electricity, Water 24 Hours) 3) Security 4) Pick & Drop (Only for Ladies) 5) Pick & Drop for Employees Children from Home to School / College Workers Participation Fund Education Aces (Only for Non-Management Staff) 5 Meter Fabrics Free per worker (Excluding Management Staff) Medical Facility (Group Medical Insurance for Management Staff + Social Security for Non-Management Staff) Marriage Fund (Only for Workers & Non-Management Staff daughters) Training for New Hired Employees regarding their field. Computerized Machinery Big Inventory (above 80-85 Millions Rupees) Annual Increments Big Sound of ALARM (can be listened up to 15-20 Kilometer) Hajj Package Weaknesses There are many weaknesses (W). Some are as: Lack of a new product. No R & D Lack of TV, Radio, and Print Media advertising Increasing ratio of complaints of fabrics 42

Fabrics are not produced for general public. Extra Ordinary overtime consuming The main reason of high prices of DLL Fabrics. Poor Infrastructure DLL currently has a limited number of branches for customers to go to for assistance. (Minimum) Not seems to be Right person at the Right Job Big old Inventory of Fabrics in Customer Warehouse Follow the Thumb Role - The man of line No realization of Company Goals by the managers to their subordinates and workers Violation of Procedures & Polices Hold of Labor Union (Collective Bargaining Agents) Uncertainty among the Management Staff due to 1) Low salary package and insecurity of service. 2) Also many difficulties are faced for attaining the rights / benefits 3) No justified Annual Increments 4) Home & Electrical Appliances facilities have been removed since long time ago. Where as the non-management staffs are facilitated by all these things. It was noticed that there are huge amount in terms of overtime is spending without any setting the organizational goals. By making the huge amount of overtime, factory overhead departmentalization is increasing gradually and shows the bad impact on the cost per unit of finished goods. By increasing high cost per unit is the cause of low profit of finished goods. It is found that, some of the management staff is not employed according to their qualification & experience.

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The pay of worker has been revised twice within three years but the management staffs pays have not been revised commensuration with the inflation. The management staff therefore, is feeling the pinch of inflation and disheartened. After the retirement of technical staff, the vacancies have not been filled according to requirements of the job which result into production losses. Opportunities (O) and threats (T) are external factors of DLL. These describe as under: Opportunities Demand for fabrics increasing 10% annually. Monopoly in textile sector of the country Good Work Environment (Well Documentation of Record) ISO 9001-2000 Certified DLL has Big Organization Customer (Air Force, PIA, Pak Army, Pak Railways, Bangladash Air Lines etc.) International Brand Listed in Stock Exchanges Brand Identification in the public Maximum Outlet though out the whole country Advanced Technology / Machines Complete Fabrics Process (From Raw Material to Finished Good) Raw Material, Dyes, Chemical, Spares import from the different part of the world market. Threats Threats can be: As DLL has four units i.e. Lawrencepur unit-Attock (our case study), Burewala unit Dawoodabad-Vehari, Dilon unit Landhi-Karchi, and Dawood Cotton Mills, Landhi-Karchi had merged in April, 2004. Out of three units has been closed except Lawrencepur unit-

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Attock. Lawrencepur unit are bearing all expenditures of others unit and it may be close in near future. Keeping in view the threats might be:

Customer dissatisfaction i.e. Pakistan Air Force can be Contract Off due to fabrics DLL is highly labor intensive and subject to unions Due to monopolist situation Prices are highly rises every year that might be a negative impact on the business. Obsolete Machinery and spares are lying for long period of time (Value of obsolete machinery and spares of those machinery which were sold many years ago are decreasing day by day because of the bad condition) Increasing Government regulation in the industry Problem of Management Unity Lack of understanding of actual picture exist at plan and Head Office (|Plan is in Attock and Head office is in Karachi) Lack of new hiring employees after the retirements of Regular Employees Should be Right Person at the Right Job at the Right Time at the Right Place. According to new theory that your employees (Management and Non-Management) are the Variable Asset of your Company. No preparation / motivation of employees (Asset of the company because of hidden charges on the training are beard). Lack of Engineers (Mechanical Engineer etc.) Conclusion One greatest blessing of privatization is the downsizing of employees. It might be done as quickly as the firm privatizes or it might be done after some time but it is a confirmed component of privatization. Here comes the turn of DLLs employees. We are already

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facing huge unemployment and it would surely be worst when DLL employees would join the pool. DLLs operating profit decreased by 38 percent in 2005 as compared to 2004 which became the reason of retrenchment of employees. According to them, they cannot face the burden of salaries. The total number of employees of DLL is 560 including the management, ministerial staff and workers. The overall performance of the organization is highly commendable as it is still producing the best quality Woollen Fabric in the world. Within the country DLL is producing cloth for uniform of prestigious organization i.e. Pakistan, Air force, PIA, Pakistan Army and Pakistan Railway. Beside this DLL future for suiting is bright in the country. Recommendations Following recommendations are made after the observations of DLL: I strongly recommended that DLL must produce fabrics for general public by producing more fabrics. By this, DLL can get more profit. They must reduce per unit cost. However, more customers can purchase at reasonable rates that will make the cause of reasonable profit. There is need a positive relationship between the Management and CBA of the organization. There must be skilled person deploy after the retirement of the skilled person. It is strongly recommended after the observation that, no need to any strike by the labor of the organization, however, management must understand and must solve the problems of its employees. It was noticed that the salary of the management employees is very nominal i.e. below then the labors wage which is showing the no check and balance of, must be enhanced or revised with reasonable amount. Amount which is paid in term of Over Head Departmentalization must be control.

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It is need to control the labor as well as the management staff regarding their responsibilities and duties. There is need to implement the organizations policies.

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References and Sources Company websites Field surveys Meetings with the employees Balance sheet of the company www.wikipedia.com http://www.ptj.com.pk/ http://ezinearticles.com/?The-Pakistan-Textile-Industry---An-Overview&id=708009 http://www.aptma.org.pk/ Mr. M.Aslam Chaudhry (personnel Manager) Mr. Arshad Mehmood Dar (SR.IRO) Mr. Yousaf Ali Akhtar (Sr. Excise In charge) Mr. Tayyab Malik (Deputy Accounts Officer) Mr. Shaukat Khan (Supervisor F.G.S)

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