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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
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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.
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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 companywho 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 SummaryHuman 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 Schooldeveloped 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 Limitedtaught 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, hard-
working, 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
ESTABLISHEDCAPACITYOF TEXTILEINDUSTRYIN PAKISTAN ................................................................................... 1TEXTILEINDUSTRYSCONTRIBUTIONTOEXPORTS................................................................................................... 1
CONTRIBUTIONTO GDP ANDEMPLOYMENT.........................................................................................................2
ORGANIZATIONSINTHEINDUSTRY....................................................................................................................... 2
OPPORTUNITIES AVAILABLEFORTEXTILE INDUSTRY...............................................................................................2
OVERVIEW OF THE ORGANIZATION ........................................................................................................3
BRIEFHISTORY................................................................................................................................................. 3
NATUREOFTHEORGANIZATION..........................................................................................................................4
BUSINESSVOLUME (TOTALNUMBEROFSTOCK, SHARES, BONDS/COMMODITIES...........................................................4
Authorized Share Capital........................................................................................................................4
Future contracts planned .........................................................................................................................5PRODUCTLINES................................................................................................................................................ 6
I) Market Orders .....................................................................................................................................6II) Contract Orders .................................................................................................................................6
III) Garment Orders ................................................................................................................................6
Product Description ................................................................................................................................7
COMPETITORS..................................................................................................................................................8
ORGANIZATIONAL STRUCTURE ............................................................................................................... ..9
ORGANIZATIONAL HIERARCHYCHART.................................................................................................................. 9
NUMBEROFEMPLOYEES..................................................................................................................................12
MAINOFFICES................................................................................................................................................ 12
Head office ............................................................................................................................................12
Registered Office ...................................................................................................................................12
Main Offices at Plant .............................................................................................................................13
INTRODUCTION
OF
ALL
DEPARTMENTS
...............................................................................................................13Production 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 ............................................................................................................15Finished Cloth Inspection ......................................................................................................................15
Goods Receiving Section (G.R.S) .................................................................................................. ........16General Store ........................................................................................................................................16
Boiler House ..........................................................................................................................................16
Electrical Work Shop .............................................................................................................................17
Quality Control .....................................................................................................................................17I.S.O Office ............................................................................................................................................17
Civil Department ...................................................................................................................................17
COMMENTSON ORGANIZATIONALSTRUCTURE..................................................................................................... 17
INTERNSHIP PROGRAM ...............................................................................................................................17
INTRODUCTIONOFTHEBRANCHWHEREYOUDIDYOURINTERNSHIP.........................................................................17
INTERNSHIPDURATION.................................................................................................................................... 18
TRAININGDEPARTMENTS................................................................................................................................. 18
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TRAINING PROGRAM ....................................................................................................................................19
WORKDESCRIPTIONOFTHEDEPARTMENTS........................................................................................................19
Production Planning Department ..........................................................................................................19The production planning department..................................................................................................... 19
Job description ......................................................................................................................................19
Head of production planning department ..............................................................................................19
Deputy planning officer .........................................................................................................................20Senior Supervisor production planning ................................................................................... ...... ........20
Daily Stock of cloth/ Shawls/ Blankets as on daily wise made entries ...................................................20
HUMAN RESOURCE DEPARTMENTOFTHE ORGANIZATION...................................................................................20
Responsibilities .....................................................................................................................................21
Policy Making .......................................................................................................................................21
Advice ....................................................................................................................................................21Service ........................................................................................................................................... ........22
Control .......................................................................................................................................... ........23
General.................................................................................................................................................. 23
DESCRIPTIONOFTHETASKS.............................................................................................................................23
Top Store ...............................................................................................................................................25
Yarn Store ............................................................................................................................................. .25
Dyeing ...................................................................................................................................................25Spinning/ Twisting .................................................................................................................................25Weaving ................................................................................................................................................25
Mending ...............................................................................................................................................25
Finishing ...............................................................................................................................................26
STRUCTURE OF THE HR DEPARTMENT .................................................................................................27
DEPARTMENTHIERARCHY................................................................................................................................27
................................................................................................................................................................... 27
NUMBEROFEMPLOYEESUNDERHRDEPARTMENT...............................................................................................28
SUB-DEPARTMENTUNDERHRDEPARTMENT.......................................................................................................28
FUNCTIONS OF HR DEPARTMENT ...................................................................................................... ....28
HUMANRESOURCEPLANNINGANDFORECASTING ................................................................................................28HRP process .........................................................................................................................................28
Forecasting HR requirements ...............................................................................................................30
Methods to forecast HR needs ...............................................................................................................30
EMPLOYEESRECRUITMENT & SELECTION............................................................................................................ 31
Sources of candidates ...........................................................................................................................32
Employment selection process ...............................................................................................................32
TRAINING & DEVELOPMENT.............................................................................................................................33
Training need assessment .....................................................................................................................33Employee development..........................................................................................................................34
PERFORMANCEMANAGEMENT...........................................................................................................................35
Setting performance standards & expectations .....................................................................................35
Performance reports ..............................................................................................................................35
EMPLOYEECOMPENSATION & BENEFITS.............................................................................................................35
Compensation & benefits offered by the company .................................................................................35
ORGANIZATIONALCAREERMANAGEMENT...........................................................................................................36
Employee job changes ...........................................................................................................................36
Job changes with the organization ........................................................................................................37
Separations ............................................................................................................................................38
LABORMANAGEMENTRELATIONS......................................................................................................................39
CRITICAL ANALYSIS .....................................................................................................................................40
SWOT ANALYSIS OF DLL ....................................................................................................................... ......41
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STRENGTHS ................................................................................................................................................... 41
WEAKNESSES................................................................................................................................................. 42
OPPORTUNITIES..............................................................................................................................................44
THREATS....................................................................................................................................................... 44
CONCLUSION ....................................................................................................................................................45
RECOMMENDATIONS ....................................................................................................................................46REFERENCES 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 largestindustrial 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.
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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.
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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 well-
reputed 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.
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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 aswell. Dawood Lawrencepur is the first company in Pakistan to install the user tester 5(UT-
5), 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
55,000,000 (2008:55,000,000) Ordinary shares of Rs.10/-each 550,000,000 550,000,000
Issued, subscribed & paid up capital 513,546,600 466,860,550
Issued, Subscribed and Paid up Capital
2009 2008 2009 2008
Number Rupees Rupees
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2,204,002 2,204,002 Ordinary shares of Rs.10/- each fully paid 22,040,020 22,040,020
12,805,118 12,805,118 Ordinary shares of Rs.10/- each issued 128,051,180 128,051,180
for consideration other than cash
36,345,540 31,676,935 Ordinary shares of Rs.10/- each 363,455,400 316,769,350
fully paid as bonus shares
51, 354,660 46,686,055 513,546,600 466,860,550
Movement is share capital during the year
46,686,055(200838,583,516) Ordinary shares of 466,860,550 385,835,160
Rs.10/- each fully paid up
Issued 4,668,605(20088,102,539) Ordinary shares of 46,686,050 81,025,390
Rs.10/- each fully paid bonus shares
Closing Balance 513,546,600 466,860,550
Total Business volume 513,546,600
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.
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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.
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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
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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.
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DAWOOD LAWRENCEPUR LIMITED
LAWRENCEPUR UNIT
EXISTING ORGANIZATION POSITION OF MILLS
Aman-ul-Haque
Mills Manager Ghulam Khan
Conf. Secy
VacantQuality
AssuranceManager
Mr.M.SarwarSecurity/Stores
Officer
M.Aslam Choudhry
Porsonnel Manager
Abdul RaufDy .Manager
Fabric Production/Finishing
Muhammad NiazDY.Manager Yarn
Production
M.ZahidDy.Supdt.
Designing
M.AfzalSupdt.
Dyeing
FarooqAhmedSupvr.
F.C.Insp.
Jahan Dad
KhanDy.Supdt.
Qty
Fazal-e-Jamil
Supvr. Q.C
Atta Ullah Khan
T/Supvr. Q.C
Engineering
VacantD.M.E
Workshop
Khalil AhmadUtilities
Engr.
Arshad MahhmoodSr.Electrical Eng ineer
Haq NawazSr.Supvr
Electriv
M.AdilSr.Supvr
Air-Cond
Nasurullah KhanSr.Supervisor
Civil
Inayat ur RabSupvr
Air-Cond
M.Nadeem QamarSr.Electronic Engineer
/ISO G.Coord
M.Ejaz.SupvrElectronic
Vacant
Sup. I.S.O.
M.Aslam Choudhry
Personnel M anager
Arshad Mahmood DarSr.Industrial Relations
Officer
Tahir Mahmood
Conf. Secretary
Shah Abdul QasirSr.Supvr.
Time Office
Hafiz M. TahirKhateeb Colony
Mosque
Miss NosheenSarfraz
Supvr.Admin
Khalid U.
MahmoodDy.Manager
P.Plng
Organizational Structure
Organizational Hierarchy chart
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DAWOOD LAWRENCEPUR LIMITED
LAWRENCEPUR UNIT
EXISTING ORGANIZATION POSITION OF MILLS
Aman-ul-Haque
Mills ManagerGhulam Khan
Conf. Secy
VacantQuality
Assurance
Manager
Mr.M.SarwarSecurity/Stores
Officer
M.Aslam Choudhry
Porsonnel Manager
Abdul RaufDy .Manager
Fabric Production/
Finishing
Muhammad NiazDY.Manager Yarn
Production
M.ZahidDy.Supdt.
Designing
M.AfzalSupdt.
Dyeing
FarooqAhmedSupvr.
F.C.Insp.
Jahan Dad
KhanDy.Supdt.
Qty
Fazal-e-Jamil
Supvr. Q.C
Atta Ullah Khan
T/Supvr. Q.C
Engineering
Vacant
D.M.E
Workshop
Khalil Ahmad
Utilities
Engr.
Arshad Mahhmood
Sr.Electrical Engineer
Haq NawazSr.Supvr
Electriv
M.AdilSr.Supvr
Air-Cond
Nasurullah KhanSr.Supervisor
Civil
Inayat ur RabSupvr
Air-Cond
M.Nadeem Qamar
Sr.Electronic Engineer
/ISO G.Coord
M.Ejaz.Supvr
Electronic
Vacant
Sup. I.S.O.
M.Aslam Choudhry
Personnel Manager
Arshad Mahmood Dar
Sr.Industrial Relations
Officer
Tahir Mahmood
Conf. Secretary
Shah Abdul QasirSr.Supvr.
Time Office
Hafiz M. TahirKhateeb Colony
Mosque
Miss NosheenSarfraz
Supvr.Admin
Khalid U.Mahmood
Dy.ManagerP.Plng
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DAWOOD LAWRENCEPUR LIMITEDLAWRENCEPUR UNIT
EXISITING ORGANIZATION POSITION OF THE OFFICERS WHO ARE REPORTING TO
SALES AND ACCOUNTS (H.O)
ACCOUNTS
SECONDS SHOP/LAWRENCIA
FINISHED GOODS STORE
Khalid U.MehmoodDY.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
Vacant
Dy.Sales
Officer M-3
Muhammad JaveedSupervisor
Ansar AhmedSupervisor
M.Iqbal BhattiSr.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. Cash Office
ii. Wages Office
iii. Store Accounts
iv. 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 bases2. 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
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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. How much finished goods i.e. fabrics & yarn were produced during the month?
ii. How many shifts were used to make the subjected fabrics?
iii. 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
copies for Accounts Department 1 copy for Office record)
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
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 well-
reputed 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
bepersonnel 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 personneldepartment 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) Casual leave (10 days with pay leave given to all employees in the
calendar year.
ii) 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 internshipprogram 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 inmanufacturing 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 completelycomputerized 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
Sanitation
8 Workers
Labor Office
3 Clerks
Tel. Exchange1 Officer
Time Office1 Officer, 2 Clerks
Officer Club
3 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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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 theorganization 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 When to use
Focus Group
Small group facilitated discussion enablesanecdotal evidence to be obtained
highly specialized fields, to gain information
quickly
Survey
Employee surveys of intentions can help
predict likely outcomes and identify
impending changes
Best conducted on a regular basis to obtain
trends, high reliability
Delphi technique
Draws together subject matter experts and
engages them in assessing likely impactsand their assessments of future directions
and trends
Specialized area, to obtain senior input
Force field analysis
Small group brainstorm force field analysis
to identify forces that promote and resist
change
Significant external barriers present
Scenario planning
Narrative statements of possible futures forthe organization
Lack of clarity and ambiguity of future
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 minority-
oriented 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 ofbenefits 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
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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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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
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.
Promotions
Demotions
Layoffs,
Retirements,
Resignations
Transfers,
Relocations
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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 everthey 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 resourcemanagement 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
WeaknessesThere 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
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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 Lawrencep