ACKNOWLEDGEMENTS
“In the name of ALLAH, WHO is the most beneficial and merciful?”
We could not explain HIS dignity because our knowledge is limited and HIS dignity is limitless. Firstly, I am very thankful to ALLAH, because HE gave me courage and knowledge to prepare this internship report as well as doing the right things in a rightful manner. Secondly I am glad about my parents and my teachers because they encourage me to prepare this report. I am also thankful to my HOD Mr. Ali Abdullah Mahboob who provides us that knowledgeable activity.
I would like to acknowledge the valuable guidance provided to me by Mr. Abdal Javaid (Assistant Manager HR), of Haleeb Foods Limited. I also express my in depth gratitude to the management of Haleeb Foods Limited who shared their insights and grounds realities with me. There are many people but few of them I would like to mentioned specially:
Mr. Omer Saleem Babar (Manager HR & IR)
Mr. Abdal Javaid (Assistant Manager HR)
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Mr. Kazim Ali (Admin Executive)
Mr. Akhtar (Time Keeper)
Mr. Abad (Time Keeper)
Mr. Abdul Sattar (Time Keeper)
Mr. Tanzeel (Time Keeper)
Mr. Shahid (SHE e xecutive)
Along with all these dignified personalities, my friends play an important role for guidance. At the end I do not feel hesitation in admitting the fact that without the guidance, help and cooperation of the above mentioned people I would not be able here writing these lines.
TABLE OF THE CONTENTS
Sr#
CONTENTS
1
Executive Summary
2
Introduction of the Organization
PAGE #
05
07
Overview of the Organization
3
Brief History
Nature of the Organization
Business volume
Product lines
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Mr. Kazim Ali (Admin Executive)
Mr. Akhtar (Time Keeper)
Mr. Abad (Time Keeper)
Mr. Abdul Sattar (Time Keeper)
Mr. Tanzeel (Time Keeper)
Mr. Shahid (SHE e xecutive)
Along with all these dignified personalities, my friends play an important role for guidance. At the end I do not feel hesitation in admitting the fact that without the guidance, help and cooperation of the above mentioned people I would not be able here writing these lines.
TABLE OF THE CONTENTS
Sr#
CONTENTS
1
Executive Summary
2
Introduction of the Organization
PAGE #
05
07
Overview of the Organization
3
Brief History
Nature of the Organization
Business volume
Product lines
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PEST analysis
Contribution toward ED
Organizational Organizational Structure
4
5
6
7
8
9
10
11
12
13
Hierarchy chart
Number of employees
Main offices
Introduction to all departments
Comments on OS
35-42
Introduction to working office
43
Details of supervisors
65
Weekly timetable
65
Learning
69
SWOT analysis
73
Conclusion
76
Recommendations Recommendati ons and Suggestions
78-79
References
81
Appendix
82
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EXECUTIVE SUMMARY
st
I do my internship in the HR department of Haleeb foods limited (HFL). HFL started its dairy production on 1
July, 1984 and having a capital of Rs. 46 Million under the name of Chaudhry Dairies Limited which was renamed as CDL Foods Limited and now it is converted into Haleeb Foods Limited. HFL is the National Company and having immense strategies to enter into international markets. In the mixture of multinational companies HFL has a distinguished place. Currently HFL having a tough time and a downsizing stage in the last 5-7 years. This because of shortage of rd
fund and no further investments. Shortage of funds exist due to great investment in the RYK plant, which is the 3 largest and highly technology based plant of Asia. I observed during my internship, it has a strong capacity to regain its market share. The reason is that HFL is the most experienced dairy company in Pakistan and having the strong policies, strategies, sophisticated management and objectives to regain its market share. The report starts with the introduction of the company, mission and the vision of the organization and its structure covering all the departments, HFL's HR process, weekly activities, SWOT Analysis, observations, conclusion and suggestions. The overall structure of HFL is very commendable. The management has recently restructured the organization before that they were using traditional structure and introduces the new post of COO replace with GM.
This 6 week practical working with the professional organization, I gain how to manage the official routine activities at the initial level. After completion of my internship I’m feeling very confident being a professional and now I am capable of understanding the official matters. In the HR department of HFL I learned a lot of things related to HR procedures and methods, Time office handling, management, flow of different activities, generation of different documents and all other related activities in the
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concerned department. My boss gave me different tasks, which were related to my interest, and also many other things that will help me a lot when I will start my professional career. career. My contributions in that department were valuable and are appreciated by my boss and all other members of my department.
PART -1
1-INTRODUCTION
HFL is now one of the fastest growing packaged food company in Pakistan with an annual turnover of Rs. 5.49 Billion (F2009) .The ideas of Haleeb foods was to process and sell dairy products. Today a Haleeb food limited is a fast growing food products company. It is a private limited company. It started commercial production in July, 1984. Due to consistently superior performance, it has been achieved undisputed leadership in the liquid packaged milk category with a market share of over 65%. Haleeb Foods Limited Limited has a very strong brand portfolio consisting of dairy as well as non-dairy products. Haleeb foods has a state of the art milk processing facility situated at 62-KM Multan road which is
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near to Bhai Pheru and 22-KM KLP road, Rahim Yar khan. The head business office of HF is placed in the evergreen metropolis of Lahore at 135 ferozepur route. A Haleeb nutrient is producing a figure of nutrient products some for consumers and business enterprise users. Haleeb Foods has divided its merchandise case in 3 directing brands including Haleeb Candia and Tropico. Candia and Tropico. Haleeb is the flagship trade name of the companionship. UHT Milk of HF is available in 5 Sku s stock safekeeping unit of Tetra pack packaging i.e.
200ml
250 ml (Quarter pack)
500 ml (Half Pack)
1000ml (Liter pack)
1500 ml ( 1.5 Liter Pack)
Haleeb has also increasingly heterogeneous from UHT Milk to other merchandise categories as well. These production line of reasoning extensions include Haleeb combatant Haleeb dairy product Haleeb emollient Haleeb Labban drink dairy product Haleeb Asli Desi ghee combatant Oil Haleeb Fun day body fluid drunkenness Haleeb Skimz nonfat aliment Haleeb N Rish full phase of the moon emollient aliment gunpowder Haleeb trade good day vestal Juices. Haleeb Good day is the only range of 100% pure juices in the country with a variety of 6 pure juice flavors. Haleeb Foods having a dealership agreement with Cadillac France launched Candia Double sterilized Milk in bottle formatting in April 1999. Candia is also available in the Candia Classic discrepancy which is positioned for Tea. Some other recent enterprise is Candia Candy Up which is flavored Milk targeted to children. HFL has one of the largest states wide statistical distribution networks delivering high caliber products evenings in the remote areas of Pakistan. With a web of 1100 distributors the company ensures that the product is available in all the urban and semi municipality areas of Pakistan Furthermore concerted efforts are beingness made to develop the rural marketplace as wellspring. But recently under current scenario the distributors range has been restricted up to 250. HFL has 6114 registered suppliers and 1500 suppliers provide raw milk on daily basis but currently because of gigantic flood disaster in southern Punjab and Sindh this figure has been reduced to814 suppliers. Haleeb food has an effective and capable Export section which has successfully approach opportunities in foreign markets including Korea Hong Kong USA UK China,
Afghanistan, Bangladesh and the center east. But this department is also not operating at the moment for almost 8 months due to bad financial condition. In order to provide the best quality products to its consumers HFL has a well developed supply chain substructure. It has heavily invested ina vast network of company operated milk collection centers across the country. Locations are 4 regions for milk aggregation purpose which are farther divided into main areas and sub center. Haleeb food has a rigorous and terrible quality insurance policy regarding consumption of raw milk. HF is the only companionship that conducts 21 strict quality tests to ensure that alone fresh Milk of the highest caliber is recognized at the plant land site. These internationally accepted tests are used to check for a) Adulteration, b) Microbiological contamination
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c) Adequacy of nutritional contents
HALEEB FOODS LIMITED
Further Haleeb Foods is the alone food companionship in Pakistan that has the followers international certifications of caliber and prestegiousness HACCP in process controls for safer products ISO 9002 bettor quality for greater client satisfaction ISO 14000 environs friendly trading operations
The companionship follows the philosophy of delighting the customers. The companies behave them as partners and keep transmission channel of communicating open with them. The company has succeeded in this by continuously improving the quality of its products and by satisfying the needs of its customers. The company believes in creating and sustaining surrounding which encourages acquisition and authorization and these in bend help strengthen the caliber culture across the concern.
In keeping with the companionship s comiteddness towards merchandise diversification and to provide a broad range of quality nutrient products to our quantitative customers the name of CDL Foods Limited has been altered to Haleeb Foods express with consequence from February 2004. Haleeb is an Arabic word which means milk. HFL is now turning from the dairies based company to food-based company and that was the basic idea behind changing the name of the company. Haleeb foods limited believes in using film editing edge physical process and promotion technologies to meet user expectations of hygienic and high caliber food products. HFL has more than 30 Tetra machines for its UHT milk brands and 5 UHT units with a capacity of producing more than 1 Million Liters of Milk every day. Guardianship in position the bulk potential and increasing growing trend of the marketplace the companionship has recently inaugurated a second mug ump UHT works at Rahim Yar caravansary. The RYK plant became operational in Aug, 2005 but stop operations later in 2007 because of HFLs condition. HFL has a highly professional direction team with a progressive tense operating manner. The management team comprises of highly seasoned professionals with diverse global experience of managing and developing new brands. It can lay claim to be one of the very few Pakistani organizations which are truly followers the theoretical account adopted by globally successfully corporations with clearly outlined roles for shareholders and the direction team.
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Milk Collection System
REGION
RenalaKhurd
MianChannu
Jhang
ArifWala
SUBZONE
1.Renala Khuurd
1.MianChannu
1.Jhang
1. ArifWala
2.Haveli
2. Ghazi Abad
2. Farooqa
2. Pakpattan
3.Ellah Abad
3. Layyah
3.Minchanba
4.BP Project
4.ShahJewna
4. Chishtian
5. Bhowana The company takes national organization delivering international quality products and higher pride in being a model value for money to its consumers. The management squad at Haleeb foods limite strongly believes that Pakistan offers tremendous potential for food concern due to a size consumer base of operations high credence of prepackaged food and a growth urban center class user segment.
2-OVERVIEW OF THE ORGANIZATION
2.1-BRIEF HISTORY
Haleeb Foods Ltd was incorporated on July 1st, 1984 with a capital of Rs. 46 Million under the name of CDL which was renamed as CDL Foods Limited and now it is known to be as Haleeb Foods Limited. At that time it had the capacity of producing 80,000 / liters of milk per day having total area of 32 acres in bhai bheru plant. The initial production process started with UHT liquid milk. . The liquid Milk was the first merchandise launched in the marketplace it started its military operation in 1985 at that time 20 other dairy farm plants were also approach in and all those including MILKPAK were exploitation obsolete engineering that was used in EUROPE. HFL Plant was the only plant based on the latest
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technology and the basic idea behind that were particularly dairy foods products. Haleeb is one brand that is toady known is everywhere. From November 1989 till December 1991 HFL had a joint venture with fries land Frico Domo of Netherlands. This joint was amicably liquid on history of FFD s alteration in direction in their global scheme. As an ISO 9002 certified company, Haleeb has been the dominant market leader of UHT milk in Pakistan by capturing 61% share. Franchise agreement with Canada is a market leader in the liquid milk market in France, was assigned in December 1998. Under this arrangement, the company launched Candia range of value added liquid milk product and also have access to latest production, technical and marketing know-how.
Initially company launched different products but some of them could not become successful. As the company's basic concern is quality eventually company abandoned products that were not according to the market needs. In 2002 the company contributed 61% to the country's packed milk market. Building an excellent reputation over the years HFL continues to be at the forefront of product and packaging innovation. By the saving grace of God it has achieved marketplace leadership in several nutrient categories with a identical strong case consisting of leading subject and International brands
Haleeb Candia dairy farm Queen Tea Max
Skimz Tropico and Good Day. Apart from its extensive nationwide distribution networks, HFL is also serving several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian states. .
2.2-NATUR OF THE ORGANIZATION The basic purpose of HFL is manufacturing, processing and sale of packaged food products.HFL is STRATEGIC in nature. Business Volume The business volume of HFL for 2009-2010 is given below. The annual turnover for 2006 is Rs.9 Billion. Recently, Haleeb Foods has invested in another plant in Rahim Yar Khan, whose primary purpose is to serve more and more customers.
HFL is private limited company and its shares in the family of Mr. Ilyas Chaudhry.
Statement
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Amounts in Rupees
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Authorized Capital
250,000,000
25,000,000 ordinary shares of Rs. 10 each Issued, subscribed and paid-up capital
137,280,000
General Reserves
275,000,000
Accumulated loss
(359,540,000)
Assets
Non-current ASSESTS
4,884,764,000
Current ASSESTS
1,030,456,000
Total Assets
5,915,220,000
Haleeb Foods is the fastest growing packaged food company in Pakistan. 5, 492,801,000 as a fiscal year 2009.
HALEEB FOODS LIMITED Detail of Annual Turnover and Profitability From 2004 to 2008 Description
2007
2006
2005
2004
9,009,250
9,317,222
8,958,213
7,086,175
5,941,780
Gross Profit
994,013
1,187,727
1,141,693
1,090,860
870,368
Operating (Loss) Profit
(81,485)
409,677
576,427
544,711
417,773
(Loss)/ Profit Before Taxation
(219,735)
308,167
516,606
486,114
380,673
(Loss)/ Profit After Taxation
(132,113)
198,274
268,659
345,697
232,888
Sales Net
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2008
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Sales Net 10000000 9500000 9000000 8500000 8000000 7500000 7000000 6500000 6000000 5500000 5000000 1
2
3
4
5
4
5
Gross Profit
1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 1,000,000 950,000 900,000 850,000 800,000 1
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3
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Operating (Loss) Profit
600,000 500,000 400,000 300,000 200,000 100,000 1
2
3
4
5
4
5
4
5
(100,000)
(Loss)/ Profit Before Taxation
600,000 500,000 400,000 300,000 200,000 100,000 1
2
3
(100,000)
(Loss)/ Profit After Taxation
400,000 300,000 200,000 100,000 1
2
3
(100,000) (200,000)
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2.3-CURRENT STATUS
Haleeb has a first mover advantage, so it is has been the leader of dairy products in Pakistan. HFL had the 67% market share of UHT products. Haleeb has strong competitors like Nestle, Engro foods. The current situation of Haleeb foods is declining and continue struggle to regain is existing standard. The annual turnover is the 15% of its market share. The declining stage has been started with start of 2006. As the market leader of dairy products as well as increasing growth rate, confidence of management increasingly gradually. HFL switch from dairy to food industry and introduces food products like juices, powdered custard and ice cream, kheer, firni and jelly. In 2007 there is a great downsizing and firing. The main reason of declining is the production of bad quality UHT milk and mismanagement QA department. As demand of food products increasing, there is no checking of quality milk and lead to bad image towards customers. Customers started switching to other brands like Milk Pack, Tarang and Olpers. Promotions are given to the senior management and new hiring takes place in the mid of 2008.
2.4-PURPOSES TO STUDYING THE ORGANIZATION
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The main purpose of studying the organization to look vision, mission, policies, objectives, internal environment as well as external environment, economic situations in which organization operates, political trends, legal trends as well as social trends. Each factor takes an immense effect on the operation of the organization.
Company’s Values
Haleeb has vales, these are
Policies Policies are the ways through which annual objectives will be achieved. Policies include guidelines, rules, and procedures establish to support efforts to achieve stated objectives. Policies provide the guidelines for decision making. Haleeb policies are Build branded food business to improve quality of life by offering tasty, sage, hygienically processed, affordable, highly nutritional food products through environment friendly processes to our customers while maximizing stake holders' value.
Meet the requirement of all relevant legislation and regulation related to consumer satisfaction & safety, environment and other applicable laws etc. To prevent pollution through controlling levels of harmful emission, effluents and other wastes. Contribute to safe and healthy environment for our country. Promote mutual trust with customers, suppliers, employees, shareholders and community.
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Provide all the necessary resources for the continual improvement in quality, safety of our products, processes and environment.
Goals Goals are the short terms objectives, which are achieve in almost one year. Goals are the elaborated Mission statement. These are We are committed to the provision of nutritious. Hygienically processed and packed dairy products to the community. We are committed to improve and sustained our reputation for quality in all operations while maintaining competitive prices. We are committed to build and maintain loyal relationships. This will bring about m utual prosperity to customers, suppliers, shareholders, employees and the community. We support this committed by: Recognizing that the satisfaction of both external and internal customer is fundamental to our success. Realizing the vital role of supplies for the timely supplies of agreed quality. Continually improving productivity and cost effectiveness to secure the future of the company. Promoting job satisfaction recognizing that the company's progress depends upon its employees and believing in a lifelong relationship with them. Playing and active role in promoting a safe and healthy environment.
2.5-PRODUCT LINES Product lines are the group of products which are closely related, Product lines of HFL are
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1986
Haleeb Milk
1997
Haleeb Asli Desi Ghee
1998
Haleeb Cream, Candia Skimz Milk Powder
1999
Candia Milk, Candia Skimz Liquid Milk
2000
Tropico Juice Drink, Haleeb Dairy Queen
2001
Haleeb N'rish Instant Full Cream Milk Powder
2002
Haleeb N'rish Fortified Instant Full Cream Milk Powder
2003
Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb Plain Yog
2004
Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink, Candia
2005
Haleeb Cream With Honey, Haleeb Tea Max with Cardamom, Haleeb
2006
Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico Nectar
2007
Haleeb Cheddar cheese
Milk Pack: Due to the thickness, every customer knows only Haleeb milk pack makes the best tea. Ingredients are
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3.5% fats 8.9% solid non fats It is the first product of Haleeb with easy package opening, 6 -layered tetra pack. Shelf life is 3 months.. Availability
1500 ml: 8 Packs / carton
1000 ml: 12 packs/carton
500 ml: 12 packs/shrink-wrapped tray
250 ml: 27 packs/shrink-wrapped tray
Asli Desi Ghee: Ghee production takes place from heating the butter slowly. It is free from any artificial ingredients and nutritionally preserved. Availability
0.5 kg pouch: 10 packs/carton
1 kg pouch: 5 packs/carton
1 kg tin: 6 tins/carton
5 kg tin: 2 tins/carton
16 kg tin: 1 tin/carton
Haleeb Cream: Its production takes place from pure and fresh milk. It is used for different purposes like in coffee and eating with bread. It is 6-layerd tetra pack and having 6 months shelf life. Availability
250 ml: 27 packs/shrink-wrapped tray
65 ml mini pack: 24 packs/dispenser, 6 dispensers/carton
Candia Skimz Powder:
It is a fat-free powdered milk, low cholesterol, high proteins and calcium. Two types of milk powders, full cream and skimmed. SKIMZ is a skimmed milk powder. Full cream powder contains 28% fat, whereas SKIMZ contains less than 1% fat. It is useful for weight conscious as well those people which require low cholesterol level. Availability
200 g: 12 skillets/shrink-wrapped tray
500 g: 12 skillets/carton
Reshmi pack It is a long life packaged milk and offers consumers premium quality milk at an attractive price. Due to its multi-layered packaging material, it prevents milk from attacking of bacteria and heat.
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Availability
125 ml: 1.25 liters
250ml: 5 liters
1000ml: 6 liters
Haleeb Bottle: This bottle is cent percent recyclable. The Milk Bottle's convenient screw cap makes it easy to use in our day to day life. It is approved by CCTPA with multi-layered packaging and safe from bacteria and sunlight. Availibility
1000 ml / 8 pieces per cartoon
250 ml / 24 pieces per cartoon
Dairy Queen: It is another UHT Milk having ingredients 3.5% fat 8.9% solid non fats It is 6-layered tetra fino packaging with 2 months shelf life. Availability
250 ml: 24 pouches per carton
500 ml: 16 pouches per carton
1000 ml: 9 pouches per carton
Gold: That type of milk which has both taste milk and cream. It makes a perfect cup of tea to maintain health. Availability
1000 ml: 12 packs/carton
500 ml: 12 packs/tray
250 ml: 27 packs/tray
Tea max: This tea max is targeted to especially for tea and coffee lovers. It is 6-layered tetrapackaging and available in different flavors. Availibility
200 ml (plain) pack: 27 packs/carton
200 ml (cardamom) pack: 27 packs/carton
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Funday: Funday is a delicious juice and targeted to the kids with calcium, vitamins A, C and D. it has 6-layered tetra pack packaging. It is available in different flavors like mango, peach etc. Availability
200ml Pack: 36 Packs /Carton Shrink wrap units
200ml Pack: 27 Packs/Carton
Good Day: It provides cent percent pure juices for customers without any sugar, flavor. It available in six premium juices (apple, pineapple, red grape, mango, orange, and mixed fruit). It is packed in a 6-layered Tetra Pack.
Availability
250 ml Pack: 27 Packs/Cartons
1000 ml Pack: 12 Packs/Carton
Cream with Honey: It is the cream with honey and in 6-layered tetra-pack. Availability
65 ml mini pack: 24 packs/dispenser
200 ml: 24 packs/tray
Butter:
It is the best natural source of vitamins A and D. Availability
20g pack: 300 packs/carton
50g pack: 120 packs/carton
100g pack: 60 packs/carton
200g pack: 30 packs/carton
1000g pack: 1 pack/carton
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Yogurt:
It meets the highest quality standards and gives consumers unmatched quality, freshness and taste with every spoonful.
Offered in 450g, 200g, with a freshness seal that keeps the product attributes fresh throughout its life. Availability
Plain Yogurt 450 gm: 12 Units/Tray
Plain Yogurt 200 gm: 24 Units/Tray.
Zera Raita: 24 Units/Tray
Mint Raita: 24 Units/Tray
Labban: Lassi is an age-old traditional beverage in the South Asian continent. Labban is only available in salty and sweet variants. It is 6-layered tetra pack. Availability
250 ml pack: 27 packs/carton
1000 ml pack: 12 packs/carton
Products under the Umbrella of Candia:
Candia Milk:
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It is Europe's Number One selling milk. Candia is pasteurized, homogenized, standardized, double sterilized milk. It is in imported packed plastic bottles. These bottles are manufactured of imported material and having longer shelf period. Availability
250 ml Bottle: 12 bottles/carton
1000 ml Bottle: 12 bottles/carton
Candia Classic:
Classic times ask for Classic tea, a product by Europe’s No.1 brand Candia. Its
richness and taste is bound to add more life to your cup, and it is an ideal choice for real tea drinkers. Availability
1000 ml: 12 bottles per case
500 ml: 12 bottles per case
Candia Skimz: It is the completely fat-free milk. It is targeted to weight-watchers and heart patients. It is also high in calcium content, which prevents osteoporosis. Packed in a 6-layered Tetra Pack packaging and having shelf life of 3 months.
Availability
250 ml: 27 packs/shrink-wrapped tray
Products under the Umbrella of Tropico: Tropico Juice Drink; With the quality assurance of Haleeb Foods, Tropico is the premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavors: apple, mango, and mix fruit, packed in a 6-layered Tetra Pack Brick Aseptic packaging. Availability
1000ml Pack: 12 Packs/Carton
250 ml pack: 36 packs/carton
250ml Pack: 27 Packs/Cartons
Tropico Nectar:
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Tropico nectar is another product from the house of Haleeb Foods Limited, which is 100% pure nectar, available in four sumptuous flavors including Red Blood Orange & Kinoo, Mango, Apple and Kinoo. Haleeb Tropico is also the only brand that is offering Red Blood Orange & Kinoo Juice - that is so deliciously different that you will want to have it in your house, all year long! Availability
250ml: 27 Packs/Carton
1 Ltr: 12 Packs/Carton
2.6-PEST ANALYSIS
Pest analysis is basically the abbreviation of Political, Economical, Social and Technological analysis of an organization. You can say that is an external or industry analysis. These factors play an important role for the organizational development. When any factor change, consumer demand and other variables change, due to this changing strategies change by the organization. It means external analysis is more important than internal analysis for an organizational development.
POLITICAL CONDITIONS:
For domestic organization, political conditions are less effective than international organization. So HFL is a domestic organization, it is less effective. For its competitors like Nestle, Government apply different types of liabilities like Tariff, Quotas, antidumping policies ect to protect the domestic organizations. Due to these implications foreign reserve account of home country increases and if competition exists, this competition is of equal level. In Pakistan political conditions are not adequate but the spending pattern is same. There are no barriers for the domestic organization instead of international organization. Political
conditions are not affected by food industries, because these products are purchasable in any price.
ECONOMICAL CONDITIONS:
Economic conditions play an important role in the organizational development. Current situation is very bad; there is routine increase in inflation. Due to this, economy stretches. For any organization like Haleeb, as inflation increases, the prices of raw material increases and the prices of final products increases. Consumer
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searches alternatives to purchase any product and not purchase any product in bulk. Due to this market share of HFL declining.
SOCIAL CONDITIONS:
Globalization is the key factor for social changes. Education play an important role, more educated people more branded products. Due to globalization more competition exists and high quality products exist. People moving towards standardization. So consumer switches toward more branded food products due to hygienic reasons.
TECHNOLOGICAL CONDITIONS:
As competition exists in the market, strategic changing exists on technological basis. High technology rd
leads to the cost minimization of products. Similarly HFL has the 3 highly technology based plant of the
Asia. The companies that are using latest technology have some cost benefits over the companies, which are not using high technology.
2.7-CONTRIBUTION TOWARDS ECONOMIC DEVELOPMENT There are estimated 160 million consumers in Pakistan, so Pakistan has the huge market. Economy expands due to increase in manufacturing, investments, strengthening in balance of payments and consumer spending patterns. Spending pattern is 25% of the total population. Consumers spend 42% of the income. Food sector of Pakistan is changing as changing in lifestyles exists, changing in technology as well as eating habits changes. Expenditure on foods increases 10% annually and currently estimated is 1.4 billion, of which 325 million of export products. Due to changes in habits, education, purchasing pattern and cultural changes, the pattern of food products is western type. So Haleeb foods play as a contributor in food industry.
2.8-COMPANY INFORMATION Company information consists of those strategists which takes place an important role in decision making. These are Board of Directors
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Mr. Ilyas Chaudhry (Chairman) Mr. Imran Amjad
(Chief executive)
Mrs. Nasreen Ilyas Mian Muhammad Amjad Mohamed Ishaque Khan Mian Yasir Mahmood Saqib Ali Pervaiz Ahmed Khan Jawaid Abdul ghani Infan Mustafa Hasan A.Bilgrami
(Bank nominee)
Chairman Mr. Ilyas Chaudhry Auditors Hameed Chaudri & Co. Chartered Accountants Legal advisor Jawad Mahmood Paasha Advocate Company Secretary Arif Kitchlew
3-ORGANIZATIONAL STRUCTURE
3.1-ORGANIZATIONAL CHART
Organizational chart shows the directed activities, who reports to whom and what are the activities done by specific person.
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HFL is a private limited company. Its control in the hand of Managing Director. It is the organization which is run by team of professionals. It has 11 departments which are successfully running their operations. The Functional Organization Structure has the following details: Chairman / Board of Directors Managing Director Human Resources (HRD) Accounts & Finance (A&F) Marketing (MKT) Sales (SAL) Supply Chain (SC) Operations (OPR) Quality Assurance (QAD) Research & Development (R&D) Finance Department Information System Technical Department
MCAS Warehouse
Logistics
Purchases / Imports
Supply Chain CEO
MIS Accounts
Finance
TAX
Finance
Human
IR
H.R Functions
Resource Chairman
Product Consumer sale Sales NPD Brand Mgmt
Customer care
Marketing
MOHAMMAD SHOAIB 07010920-090 COO
Quality Assurance
Quality Control
QMS
FMAS NPD
STRUCTURE OF THE HR DEPARTMENT Number of employees working in the HR Department with detailed hieraechy:
COO Manager HR/IR
Assistant Manager HR
Time Keeper (4)
Admin Executive
Canteen S/P
Weigh Bridge O/P (4)
PB S/P
Gate Office I/C (4) Imam Masjid
Security I/C (3)
Security Guards (36)
Gardner (5)
3.2-NUMBER OF EMPLOYEES There are 1500 plus workers at HFL at present. The retirement age is 60 years for employees.
3.4-OFFICES MOHAMMAD SHOAIB 07010920-090
FMAS
Registered & Head Office 135-Ferozpur Road, Lahore-54600 Phone: (042) 111 135 135 Fax:
(042) 3759 0376
Web:
www.haleebfoods.com
E-mail:
[email protected] Bhaipheru – Plant
62 –KM Lahore Multan Road, Bhai Pheru Phone:
(042) 3751 1636 (049) 451 2174 (049) 438 8223-5 & (049) 451 0874-5
Fax:
(049) 451 0877
Rahim yar Khan – Plant 22 – KM KLP RoadRahim Yar Khan Phone:
(068) 567 6330-1 & 567 6333-4
Fax:
(068) 567 6332
Regional Sales office - Rawalpindi Flat # 14/15, Aftab Plaza, Said pur road, Rawlpindi, Pakistan Phones: +92 (051) 4426502 Fax
+92 (051) 4426503
E-mail:
[email protected]
MOHAMMAD SHOAIB 07010920-090
FMAS
Regional Sales office - Multan 20-A Gulgasht Colony, Multan Pakistan. Phones: +92 (061) 221266 Fax.
+92 (061) 530927
E-mail:
[email protected]
Regional Sales office - Karachi Wind Song Palace, KCHS, Shahrah –e-Faisal, Karachi, Pakistan Suit # 16-17, Block 7 & Phones: +92 (021) 4539080 Fax.
+92 (021) 4536740
E-mail:
[email protected]
3.5-INTRODUCTION TO ALL DEPARTMENTS HFL is a private limited company. Its control in the hand of Managing Director. It is the organization which is run by team of professionals. It has 11 departments which are successfully running their operations. These are Human Resources (HRD) Accounts & Finance (A&F) Marketing (MKT) Sales (SAL) Supply Chain (SC) Operations (OPR) Quality Assurance (QAD) Research & Development (R&D) Finance Department Information System Technical Department
MOHAMMAD SHOAIB 07010920-090
FMAS
3.6-COMMENTS ON OS
HFL has the advance superior organizational structure. As strategies play an important role for organization, similarly organizational structure is important.
Those organizations which have organizational structure leads to
performance and learning. As I define organizational chart is hierarchical in nature and leads to direction of reporting. Hierarchical nature is the beauty of organizational structure. These are the main points about organizational structure Organizational chart is hierarchical in nature. Upward, downward, horizontal Communication exists in the organization. Hierarchical level shows the good span of control.
Part 2 4-INTERNEES WORK
4.1-INTRODUCTION TO ADMIN DEPARTMENT I do my internship at Haleeb foods limited at bhai pahru plant.The area of plant is 24 acre. Haleeb has its own another plant at Rahim yar khan. It has also the area greater than bhai pheru plant. In Haleeb foods admin and hr departments are single one and operate as whole. In bhai pheru plant, the supervision of HR and ADMIN department in the hand of HR/IR manager. The hierarchy if HR department is shown in the report. There is an admin executive and SHE
MOHAMMAD SHOAIB 07010920-090
FMAS
supervisor, which almost hold all the activities related to their job description. SHE (safety, health and environment) department play an important role in employees safety, health and environment. Now I am explaining the SHE to some extent. Safety and health Safety and health further classified into three divisions 1-equipment and plant safety 2-employees safety 3-assets safety
In order to explain these points, the one thing is very necessary for Haleeb, which is security. In every organization security problems exist. In 2004 some sort of security problems exists in Haleeb. So companies hire security guards. Haleeb also have security guards but they are not permanent employees. Haleeb contract with KUMAIL,SECURITY SOLUTIONS and ACCHER contractors to provide security guards as well as employees for other purposes. In Bhai Pheru plant Haleeb has total numbers of guards are 40.Their distribution is 1=permanent employee 2=supervisors 6=without weapons 2=Haleeb provide the weapons 29=21 weaponry, 8 without weapons The working shift change after 8 hours. Plant safety In plant safety security cameras play an important role in the safety of plant. In Haleeb foods security cameras have given name as Cable Cameras TV (CCTV`S).They are total 27 in numbers. Mr. Amir Munir is the person who watch the whole plant and CCTV`s. Equipment safety It is the requirement of ISO to attach each safety equipment to each machine. Employee Safety Employees are the assets of the organization. Their safety play an important role for the organization. Different types of equipments used for the employee’s safety but here are two which almost use in
each organization. 1-PPE`s (Personal protected equipments) 2-FFE`s (Fire fighting equipments) PPE`s means every employee use safety instruments to work in any department. For example Haleeb provide each Worker/labor shoes, acid proof weapons, welding go gals, ear muff, ear plug, heat resistive gloves, electrical gloves, safety helmets etc.
MOHAMMAD SHOAIB 07010920-090
FMAS
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HR planning Recruitment & Selection Orientation
Training & Development Performance Management Compensation and Benefits Career Development Welfare Programs For Employees HFL have the well organized and systematically operated HR department. Due to non existence of any major problem in recent years, we can say that HFL HR policies are successful.HR objectives of 2009-2010 are given below
1-Effective hiring for vacant/new positions. 2-Staff rationalization. 3-Cost reduction/effectiveness (utilities, canteen expenses, general expenses). 4-Development of safe and healthy environment. 5-Employee motivation. 6-Employee training and development.
There are 2000 workers at Haleeb Foods Limited at present. At Bhai Pharu plant Mr.Umer Saleem Babar is the IR/HR manager.Mr.Abdal Javaid is the Assistant manager HR.There are some other persons working under Assistant Manager HR, they are according to the designation like Time keepers. Canteen supervisors, Packet breaking supervisors, Imam Masjid, Gate office in charge, Weight bridge supervisors, Gardeners and security guards are under the Admin department. The retirement age is 60 years for employees. I do my internship in Haleeb foods limited at Bhai Pharu plant. The duration of my internship from July 26, 2010 to September 09, 2010. Grades of employees In HFL employees are assigned different grades on the basis of education, seniority and the promotional strategies of HR. These are:
Senior manager grade-3
SMG 3
12
Senior manager grade-2
SMG 2
11
Senior manager grade-1
SMG 1
10
Middle manager grade-2
MMG 2
09
Middle manager grade-1
MMG 1
08
Executive grade
EG
07
Officer grade-2
OG 2
06
MOHAMMAD SHOAIB 07010920-090
FMAS
Officer grade-1
OG 1
Worker grade
WG
SMG-3 = most senior WG = most junior Mess: Every organization provides the mess facility to its employees. Similarly HFL also provide this facility to its employees. Deduction of charges is based on the seniority. Food which is provided is suitable and good for health. Charges are SMG
450 rupees/month
MMG
250 rupees/month
OG
180 rupees/month
Fair Price Shop: In Lahore HFL have two fair price shops. The basic purpose of these shops is to provide all food products at 20% discount to the employees.
Time Office: “Time Office” is the backbone of the HR department of HFL in operations. Enrollment of each employee of HFL is takes place in this office. All the records of each employee of HFL is recorded here, like appointment, retirement, transfer, promotions, leaves etc. appointments required when new job are required or need for replacements. In time office there is an “Appointment Register” in which details like name, father’s name, and appointment date, address, department etc. are entered. This register also tells about the appointments made in a year and strength of all the departments. Along with the Appointment Register, there is another register known as “Strength Register”. It shows the number of workers employed. All entries regarding the wages, allowances etc. are kept in it. One year probation is given to the new employee. Three probation reports are given during this period.
Time office also maintains the personnel records. The record is being used to, calculate wages and salaries make work plans for employees and evaluate their performance. There are two types of employees in the organization: Employees who are paid on monthly basis. Employees who are paid on daily as well as hourly basis.
Attendance of each employee is taken on punching machine, when a card is punched; time of arrival as well as going is noted. There is a limit of time on which employees marked as reach on time. That time is 15 minutes, after 15 minutes late arrival is printed on the card and deduction takes place at the end of months from their salary. Employee given a permission to give the reason of late arrival with the approval of HOD. If it is approved, no deduction takes place. Time Office calculates the wages of hourly workers on this time period. In Haleeb Foods there are three shifts: First Shift
MOHAMMAD SHOAIB 07010920-090
06.30 a.m. To 03.00 p.m.
FMAS
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Job Nature Laps of time If greater laps of time exist, advertisement is given tote print media. For emergency filling of posts, Human Resource department directly contact with the colleges and universities etc. Budget constraints. Recruiting and Hiring Process: This process starts with the applications submitted by the applicants. They are asked to fulfill the requirement of the organization like CV`s along with the application. When the applications received, screening of the employees takes place on the basis of education, merit, experience, institute, CV`s standardization ect. Screened applicants are the 50% of the total applicant’s population. Eligible candidates CV`s are arranged for further process.. This activity is taken by the HR department of the Haleeb foods. The HR manager takes the test, which is based on the Comprehension Simple mathematics Simple and relevant data availability IQ Questions related to job General knowledge Computer knowledge When the test had been taken, top 10, 20, 30 applicants are asked for interview, according to the requirements. The interview is taken by the HR manager. This may be the first interview or the last interview. The interview is taken by HR manager and respected department head. Normally 30% of applicants are call for interview. Through telephone calls
or letters, the selected applicants are i nformed about the date and time of the interview. Normally two i nterviews are taken In the first interview, HR manager and department head observe the following things Alertness Confidence Leadership skills Relevant knowledge Social acceptance Interests Communication skills First impression Maturity
MOHAMMAD SHOAIB 07010920-090
FMAS
After the observations, interviewer grading the each factor which are mentioned above. Acceptable grading rate is 3-5%. After this interview, accepted applicants are called for final interview. This is the panel interview, in which panel of executives is taken that interview. Final interview is taken by: COO Deputy General Manager Human Resource Manager Departmental Head (sometimes) In this interview previous acceptability pattern are observed again by these executives and give the appointment to the final selected candidate, which is now become the part of t he organization. When the candidate has been selected, Industrial relation manager asked to take the medical test and complete the final documentations.
Training & development: Employee training is the present oriented training focuses on the individual’s current job while employee development is the future oriented training focuses on the employee’s personal growth. After selection, one year training is given to the selected employee. A name is given to that employee who is “management trainee”. In the department of Industrial Marketing, trainee given a name as “management trainee officer”. After a day this name changes into the “Assistant Manager Sales”.
During the training period, orientation is given to the trainee about the company including vision, mission, objectives, annual objectives, policies, various process, norms and values of the organization. This orientation continues two weeks to two months. When the time period of orientation has been ended, trainee should ask to present or submit the report on the organizational review. Training period in Haleeb foods is 6 months. When 6 months orientation completed, HR manager asked to the trainee what s/he gain in 6 months. Haleeb foods also provide the external courses for both existing and new employees. These courses are held in different educational institutes like LUMS. Haleeb recently joint with LUMS and starting 18 weeks diploma program in “Diploma in business administration.
Two sessions of this program has passed out till now.
New employees Training Haleeb foods limited introduce a general training program for new employees. Induction training Induction training policy of Haleeb foods is important for the new employees entering into the organization. 6 Days Orientation Program Newly employed persons are given 6 days orientation program. The basic contents are given below
MOHAMMAD SHOAIB 07010920-090
FMAS
In this six days orientation program, the basic purpose is to provide the basic information about the organization. The main points are given below They are welcomed from managing director Providing them information about Mission, Vision, Values Giving the Brief introduction of Haleeb foods limited Executive personalities of the organization Organizational chart of the Haleeb foods Information about the products and products lines Information about the competitors Information about the culture of the Haleeb foods Information about the routine works, like o
working hours
o
Head office
o
Plant
o
Canteen mess
o
Bank account details
o
Fair price shops
o
Traveling
o
And other miscellaneous things
GENERAL GUIDELINES Working hours Head office
09:00 AM TO 18:00 PM from Monday to Friday
Saturday and Sunday off
Staff of HR and sales will be on duty for day-to-day matters.
Lunch and prayer is 13:00 pm to 14:00 pm Attendance marked by hand prints
Plant There are three shifts in operating the plant. Timing of morning shifts stars from 08:30am to 16:30pm from Monday to Friday. On Saturday 08:00 to 13:00 hours and Sunday will be off. Lunch and prayer brake is 13.00pm to14:00pm hours. Canteen Mess Canteen mess facility is available in both Head office as well as Plant. At head office expenses are deducted from the salary. At plant expenses are paid directly as well as deducted from the salary. Employee of each department can check its deductions from Finance department of HFL. Mess deduction pattern given above. Bank account details
MOHAMMAD SHOAIB 07010920-090
FMAS
In the coordination of both departments Finance an Human Resource, employees gets their salary from the nearest bank to the Haleeb foods plant or the head office. Temporary, contractual as well as the permanent employees gets their salaries from the bank. Daily wages employee’s gets their salary from Time Office.
Fair price shops The basic purpose of the fair price shops established by Haleeb foods is to subsidized foods products for the employees. Subsidies given by the Haleeb foods to the employees on the basis of their designation as well as on grades. These shops are located at head office, plant, Jhang and Arifwala zones. Timing may vary from season to season. Traveling Haleeb foods provide the traveling facility to its employees from Lahore city to plant and other rural areas to plant. For special purposes, travelling service is given to employees from the prior approval of the HOD of the employees. Who Supervises the Orientation Program? Orientation programs are supervised by the Internal management. Miss Tanzela is the nominate personality to supervise the orientation to the new entrants, according to the nature of the job. Procedure of Orientation New entrants ask to take a round into each department of Haleeb foods and each employee introduce in each department. This is done, because of understandings of the work happening in the each department of Haleeb foods limited. Departmental Training After rounding each department of Haleeb foods, management trainee asked to go to the relevant department for further working activities training. This is done
starts of the probation period. They are asked to interact with the routine interacting department to operate in that department.
On The Job Training The management of Haleeb foods always prefer to the method of “on the job training”. The management of Haleeb foods think that this is the best way to learn the working activities and gaining the competencies. Training to Existing Employees In Human Resource concepts, there is an analysis known as “training need assessment” is almost used to train the existing employees. This analysis shows the training needs. Training needs Analysis (TNA) is a process of taking an over view of the performance of the organization. The main purpose of this analysis is to estimate, where we can improve the performance with training. It put the answers to the questions in the future, they are
What?
When?
Where?
MOHAMMAD SHOAIB 07010920-090
FMAS
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In order to measure the organizational goals effectively, performance appraisal is necessary to measure the organizational goals effectively. Managers and supervisors of Haleeb foods understand that performance appraisal is necessary to measure the organizational goal effectively. Workforce diversity plays an important role in performance appraisal and decision making. Performance appraisal standards based on age, sex, gender, race, religion etc. Appraisal Process The basic purpose of the performance appraisal is to match the current performance of the employee with the job descriptions. In Haleeb foods Performance appraisal discussions are held annually. Each employee of Haleeb foods has annual targets, which are measured with his or her job descriptions. Performance appraisal is totally based on employee’s annual work performance. They also offer bonuses and promotions to the working employees. When
employees are working on projects, as working on new product design, there may be an appraisal after each assignment but there still be an overall review at the end of the year. They also hold meetings two or three times a year, the main purpose of which is to review and update the objectives.
The 360 Degree Feedback In Haleeb foods 360 degree feedback concept is used to evaluate the performance of SMGs and upper level. Data is collected from supervisors, subordinates, peers, and internal and external customers. Who Carried Out the Appraisal Process? Usually, the performance appraisal performed by line managers by providing the information to the employees, how to use the organizational assets, time management. After this personal managers aid the line manager by providing the information, how to use performance appraisal forms and maintaining the data of employees, so that when upper management ask “who to promote”, the data is readily available to the upper management. Personal managers are
responsible to fill the performance appraisal forms to the whole organization and monitoring the activities of employees. Further they design the performance appraisal system for the entire organization. In addition, performance appraisal forms are filled by supervisors, peers, coordinators etc. Problem in Performance Appraisal at Haleeb At Haleeb foods I have observed that supervisors and subordinates are often ambivalent about participating in the performance appraisal process. Supervisors are uncomfortable because there organizational role places them in the position of being both judge and jury. They must make decisions that affect people carriers and lives in a significant way. Furthermore supervisors are not trained to handle the interpersonally difficult situations that are likely to be arising when feedback is negative and supervisors would like to maintain a good relationship with the subordinates at workplace. Subordinates are likely to be very ambivalent about receiving negative feedback. Some subordinates prefer and want to discuss negative aspects of their performance, so they can improve and develop themselves for future
appraisal. While others don’t wa nt to be criticized on their performance at all, because they think they are performing at
their level best and there i s no room for improvement in their performance.
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There is no investment on the training. There is no TNA (training need assessment) require. Then no development exists in the organization. One thing which is dangerous to Haleeb foods limited is the handling of training, so in the hands of single person. So no further training assessment and leads towards the downsizing. As the concept of globalization expanding, technology advancement is also a factor which increase the productivity of the organization. Similarly Haleeb foods have the latest plant but no advancement in training technique like diversified, audio video training techniques.
5-SWOT ANALYSIS
STRENGTHS OF HFL First dairy company in Pakistan to get ISO 9002, 14000 and HACCP certification. Strong Internal Control System Strong Coordination among departments. Quality Products. Environment Friendly. Socially Responsible Company Haleeb Food's products enjoy strong brand image and market pull. Innovative and constantly growing product line. Highly sophisticated plant and equipment. Qualified work force. Focus on research and development. Developed and precise milk collection system. Highly Diversified and qualified top level Management. Employee empowerment. Organization Citizenship Behavior (OCB) WEAKNESSES OF HFL Dependence on 3rd party for supply of milk. Low sales margins due to highly value added products. They cannot launch many of its expensive international brands due to the lower income groups. Selective investment due to uncertain economic and political conditions. Feasibility of new products needs to be analyzed, e.g. Candia Drinking Yogurt was launched some years back but it failed because no customer demand exists here. The packing line installed for N'Rish has a higher capacity than the actual demand of the product, resulting in higher overhead costs for the product. Inadequate marketing. Low promotional activities. No backward integration.
MOHAMMAD SHOAIB 07010920-090
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The present economic crisis in the world, led to the withdrawal of foreign management from the company and the investment has come to a halt. Price sensitive people. Milk man (Gawalas) providing non branded milk in homes. Aggressive competition with huge consumer and trade activation and a highly developed sales and distribution network New entrants in the market New threat of increasing price Psychological barriers against packaged milk especially in second tier towns; preference of loose milk over packaged milk Competitors are using dumping techniques.
6-CONCLUSION
This internship proved to be very helpful for me. I got a lot of knowledge and also the practical aspect of life. It was my second experience, but it will be very beneficial for me in my coming future. At the end of the report, I have concluded that Haleeb Foods Limited has emerged as one of a very successful firm in terms of bringing in new values to the related industry. The Company’s focus is towards giving high importance to
the customer satisfaction and retention. But at the same time I would like to say in positive manner that in past few years company faced huge losses because top level management didn’t pay attention to its financial matters and also
compromised on its quality in past few years through which customer has lost the confidence on products of HALEEB FOODS LTD and competitors of HALEEB FOODS LTD got the full benefit of it. But presently the quality of HALEEB products is at supreme level comparing with others. According to my view the major reasons for HFL to be in loss are Extra cost incurred in cost of sale including incremental depreciation and extra ordinary sales returns and finished good write down to net realizable value.
MOHAMMAD SHOAIB 07010920-090
FMAS
The company’s production for the year was less by 33% from the break-even level.
Although the Company is facing heavy losses now a day, but still has very much potential to grow and rule the industry. Company needs some strong policies and right decision making at right time. Company strongly needs a Proactive Approach in every matter. In addition to that company should use its human resources and material resources with popper planning and wisdom to cope with the new challenges. Employees are very devoted towards their work but top level management didn’t encourag e the employees by giving
allowances and other benefits Here are some findings which I observe in HR/ADMIN department. These are Very few people in HR department Load of work Lack of interest of employees about training Fatigue of training after working hours Low budget on training Communication Gap Less opportunity for new employees because turnover rate is very low Only one person evaluates the training effort. No diversity training No Audiovisual techniques
7-RECOMMENDATIONS
When supervisor provide negative feedback he/she should immediately counterbalance it with positive statement for the purpose of encouragement in that situation. There should be a continuous monitoring of performance. When performance deviates from plans one does not have to wait for the next periodic review to correct it. The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters. Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong , and how he/she can overcome their deficiencies for the future appraisal. Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for their job but it should take it as an opportunity to add or contribute more value in work of their organization
8-SUGGESTIONS I have done a detail study on Haleeb foods I have collected information about their management, staff members, departments, advertising. I have also done a positive criticism on the weak points of Haleeb. Now, I will recommend some use full suggestions, whichcan be affective for Haleeb business promotion and for the betterment of current situation.
MOHAMMAD SHOAIB 07010920-090
FMAS
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