GPH ISPAT LTD.

I n d u s t r i a l T o u r R e p o r tO n

LOCATION: CHITTAGONG EXPORT PROCESSING ZONE (CEPZ)

----PROJECT----

Overall Management practice of GPH ISPAT Limited

I n d u s t r i a l T o u r R e p o r tOn

GPH ISPAT LIMITED

Prepared by:

Project: Overall Management practice of Anita Bangladesh Limited

Date of submission: 11 December, 2011

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Prepared for:

TABLE OF CONTENT

Table Page Number

Preface 5Acknowledgement 6

Methodology 7

Objectives 8

Limitations 9

1. Introduction Part 10

Company’s brief history & background 11

2. Organization’s part 14

Department and Division 15

3. Human Resource Development 18

4. Marketing Management Part 33

5. Management Practice Part 38

6. Financial Management Part 41

Sources and Uses 42

7. Conclusion 44

Bibliography 46

Appendix---- Questionnaire =========

PREFACE

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Now a days there says that present business environment is changeable .To

understand this statement every small and large industry follow various rules,

principles, strategy and their operation procedure. To capable and understand every

student the authority of NUB arrange totally practical education and include into the

text syllabus in the B.B.A program. This investigation is one of the parts in the

syllabus. Every year arrange such like of program. After the program every student

asked to prepare a tour paper report. This program actually compliment able that was

made for B.B.A. student of NUB. Student can obtain practical knowledge after study

this investigation, which would not be possible in the way.

We visited GPH ISPAT LTD and collected various information about it. This

Tour Paper report is based on that collected information.

Acknowledgement

4

On submitting this Tour Report of Fall, 2011 BBA, we would like to express

our heartiest gratitude and indebtedness to several persons.

First of all we would like to express my deepest gratitude and heart-felt thanks

to my honorable supervisor Tarana Aziza khan, lecturer, Department of BBA,

Northerrn University Bangladesh. It is a great fortune for us in receiving

encouragement and co-operation from her. We are indebted to her for kind guidance,

valuable advice, instructions and persuasion and encouragement to assist us in all

stages of preparing this report. Frankly speaking, we not able to complete this study

without his advice and kind co-operation.

It is an excellent opportunity to heartiest thanks to Mr.Zahangir Alam,

General Manager of GPH ISPAT LIMITED, who helped me to gather information.

We also extended my sincere acknowledgement to Mr.Faruk Ahmed,senior manager

of GPH ISPAT LIMITED for helping us through providing necessary information and

data.

METHODOLOGY

5

At the time of the tour on GPH ISPAT LIMITED, we have followed several

procedures. We know to complicate any kind of task; there is one best way. That is

why we have followed a number of procedures for my knowledge. The methodology

can be portrayed as below –

Personal observation

Discussion with the concerned officer and employee of the GPH ISPAT

LIMITED.

Through the questionnaire.

Analysis of collected information.

OBJECTIVES

6

Tour report is a most valuable way for earning practical knowledge of a

professional degree. So, we have also some objectives of this tour. The main objective

of the tour is to gather practical knowledge and experience on management practices

of a multinational company. The objectives behind the tour are mentioned below:

To evaluate the performance of this company’s management systems.

To evaluate the overall performance of marketing strategy.

Organization is fast, flexible and focused on what is important.

To know the overall performance of financial activities and co-ordinates

To evaluate the performance of production activities.

To analyze the company’s Human Resource Management System.

To know the overview of management practices to analyze the company’s

Human Resource Management System.

To know the overview of management practices.

Limitations

7

Every project \Program has some limitations. we faced some constraints during

the course of my Industrial Tour Report.

These are as follows:

Time was not sufficient for preparing this report.

Collection data is very expensive.

Employees are not interested to provide actual information.

Production data is relatively applicable for related field.

GPH ISPAT Limited has no direct sales; as a result we don’t get actual

figure of cost of goods sold, inventories control and account receivable.

: Part One :I n t r o d u c t i o n

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INTRODUCTION AND BRIEF HISTORY OF THE COMPANY:

GPH ISPAT LTD Established in 1987, Jahangir & Others Limited has

been renowned in the business of trading, namely CI Sheet, MS Rebar, cement,

bitumen and zinc Ingot and established cement factory, power plant, insurance

company, steel mill and share trading house (as a corporate member of

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Chittagong Stock Exchange Limited).  In all these areas of business, the owner of

the company Mr. Md. Jahangir Alam, along with his brothers and nephews, has

been reputed as the man of commitment.  They have shown their best expertise

in cement industry by establishing M.I. Cement Factory Limited, a joint venture

with Mollah Salt Group and Premier Cement Mills Limited, a joint venture with

T. K. Group, producing the brands Crown Cement and Premier Cement

respectively. In steel manufacturing, they have gained experience and expertise

by running a hand-rolling mill, Indo Steels Re-Rolling Industries Limited from

the year 2000. Now it seems to be the right time for the company to contribute

more in the steel sector of Bangladesh with the establishment of GPH Ispat Ltd.

The factory is situated at Kumira, Sitakunda, Chittagong. It launched its

production from the -first half of 2008. The plant, consisting of three units – steel

melting, steel re-rolling and captive power plant, has been equipped by

machineries of various internationally reputed manufacturers.

PART TWO

O R G A N I Z A T I O N P A R T

Department and Divisions

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The following are the major organizational part in GPH ISPAT LIMITED.

1. Human Recourse Development

2. Marketing Management

3. Management Practice

4. Financial Management

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PART –3

H U M A N R E S O U R C E M A N A G E M E N T

HUMAN RESOURCE MANAGEMENT

INTRODUCTION

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Human Resource Management (HRM) is an extremely important area in

management, as modern management concepts are increasingly becoming people

oriented in character.

The term ‘HRM’ has been defined in different ways. The British Institute of

HR has defined it “as that part of the management concern with people at work and

with their relationship within an enterprise”. It has also been defined as:-

The part of the management process which is concerned with the human

constituents of an organization. - E. F. L. Breach.

OBJECTIVES

The objectives of Human Resource Management are as follows:

a) It is concerned with the optimum utilization of human resources within an

organization.

b) It is concerned with the creation of conditions in which each employee is

encouraged to make his best possible contribution to the effective working of

the undertaking.

c) It also concerned with the development of a sense of mutual respect and trust

between management and workers through sound relations.

d) It endeavors to increase the productive efficiency of the workers through

training, guidance and counseling and

e) It tries to rise the morale of the employees.

Current Terminology

The terms ‘HRM’, ‘Industrial Relations’, Manpower Management’, ‘Labor

Management’ etc is frequently used as if they are all synonymous.

Responsibility

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The responsibility for performing functions to achieve desired objectives has

in the foregoing been placed upon management. The primary responsibility for

personnel management in a company must be assumed by its top management.

Evaluation of the effectiveness with which desired objectives have been attained

shows where (1) future personnel plans can be improved and (2) responsible

executives can be appropriately rewarded or penalized.

Principles of HRM

The basic principles are given below:

a. Deal with people as complete individuals. Employees may be hired for their

technical and economic usefulness.

b. Make employees feel worthwhile and related. “People do not live by bread

alone” applies to workers too.

Perspective of HRM

Human resource management must deal with the present and be concerned

with the future. It must build programs that solve problems in the framework of today

and tomorrow. But if it is to perform its tasks as effectively as possible, it must also

be aware of the past.

Forces and factors and experiences in the past have their impact upon the

present and future.

Findings of the study

In my visited company, GPH ISPAT LIMITED there is a separate human

resource management department. The structure of that HRM department is as under:

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MD

Job Analysis:

Job analysis is the procedure by which the facts with regard to each job are

systematically discovered and noted. In short, it is a procedure for obtaining pertinent

job information. This information is recorded basically on two forms to make a

permanent record-one is called Job Description and the other is called Job

Specification. This is the primary and pre-condition before recruiting and selecting a

person. GPH ISPAT LIMITED follows job analysis before employee recruitment.

Job Description :

Job description is a factual statement of the duties and responsibilities of a

specific job. In other words, it describes the work performed, the responsibilities

involved, the skill or training required.

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Operation manager

Finance Manager

Production officer

A/ P/O A/PO

Job Specification:

Job specification is a statement of the human qualities necessary to do the job.

Usually it contains such items as education, experience, training and physical skills.

GPH ISPAT LIMITED follows job analysis, job specification and job description.

Employee Recruitment:

Recruitment is the process of searching for prospective employees and

stimulating them to apply for jobs in the organization. The sources of recruitment can

be broadly classified into two categories:

i) Internal source

ii) External source

Findings:

GPH ISPAT LTD. usually searches from internal sources for recruiting the

required candidates. There are some advantages and disadvantages of internal sources.

They are:

Advantages:

1. It increases employees’ performance because employee can go higher position

than previous one.

2. Internal recruitment provides opportunity for establishing essential relations

with employees.

3. It increases morale, job satisfaction and organizational citizenship.

4. It increases facilities for good person job-fit.

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Disadvantages:

1. Restriction in case of new employees.

2. Sometimes recruited employees from internal sources have lower stimuli than

recruiting from other sources.

Employee Selection:

After completing the recruitment of employees, then the selection procedure

starts. There are various types of selection test for employee selection. These are:

Written (subjective type) test,

Written (objective type) test,

Oral test

Medical test

Others

Findings:

But GPH ISPAT LIMITED makes firstly a short list of applicants from among

all before selection test. And this short list is prepared on the basis of experience and

qualification. Then the company follows the following tests for employee selection:

Written (subjective type) test,

Oral test

Medical test

But this selection procedure can vary person to person. Such that

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For worker: In YSL, there is no written test for selecting workers.

For staff: Departmental manger is responsible for selecting fight people.

For Junior Manager/Brand Manager :

Human resource department takes a series of tests. All the candidates are

required to sit for written test. Besides this, written test, interview, physical test, group

performance test, physical examination is also included.

For Senior Manager :

This post is filled up through promotion and hiring from other manufacturing

concerns.

The sequence of selection procedure of this company is as follows:

Advertising in daily newspaper

Written test taking from short listed candidates

Oral test

Medical test

Final selection

Training and Development:

Training is a corner-stone of sound management. Employees must be

systematically trained if they are to do their jobs well. Moreover, a training program

gives management an opportunity to explain carefully and clearly its policies, rules

and regulations. In a large company, however, the personnel

Manager usually delegates the responsibilities for the training to a manager or

an officer in charge of the training section of the Personnel Department. There are

various kind of training methods that constitute the content of the training programs.

These are:

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1. On the job training

2. Off the job training

3. Apprenticeship training

Findings:

GPH ISPAT LIMITED maintains on the job training.

This training is conducted by the supervisors or by a senior employee who is

responsible for instructing the employee. One major advantage of the on the job

training method is that the employee have first-hand experience with the job and

learns by doing.

Performance Appraisal:

Performance appraisal is a systematic appraisal of an employee by his

supervising officer who is conversant with the employee’s job performance. In other

words, it is a process of evaluating performance of an employee by his superior with

relation to his job requirements.

The main purposes and uses of performance appraisal are as follows:

1. Employee performance

2. Employee development

3. Supervisory understanding

Findings:

GPH ISPAT LIMITED maintains the employee performance evaluation

regularly. The company has professional appraisers to evaluate the performance.

ASSESSMENT RATING:

The appraise (employee under assessment) and appraiser

(Supervisor) are required to make joint assessment of the performance demonstration by

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the appraisee during the period.

WAGES AND SALARY ADMINISTRATION:

In a broader sense, it is used to describe all types and forms of compensation

and benefits. It includes hourly pay of production workers and monthly supervisory,

clerical staff, executives etc.

According to popular usage of the two terms, salary normally refers to those

payments that are computed on a weekly, monthly or yearly basis for “white collar

worker”, whereas wage refers to those payments that are computed on an hourly or a

daily basis for “blue collar workers”.

Personnel department has its own policy for salary and wage administration.

There are some bases for setting pay. These are as follows:

a. Seniority

b. Experience

c. Performance

d. Position

e. Geographical distance

f. Academic qualificationg. Personal relation

Findings:

In GPH ISPAT LIMITED, there is a specified salary structure for employees

in the organization. The main basses for setting basic pay in this organization are

seniority and performance. But this salary varies employee to employee.

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Employee Benefits and Services:

Nearly every organization provides its employees certain tangible benefits over

and above the basic pay. The term benefits and services is very widely used to

designate this area of personnel management practice. The benefits may be financial

and also may be non-financial benefits and services. The financial benefits may be-

1. Salary

2. Bonus

3. Allowance

4. Incentives

5. Insurance or provident fund.

Again, the non-financial benefits may be-

1. Communications/transport

2. Medical services

3. Death insurance

4. Accommodation

5. Entertainment

6. Others

Motivation:

Motivation is a general term applying to the entire class of drives, desires,

needs, wishes and similar forces. To say that managers motivate their subordinates is

to say that they do these things which they hope will satisfy these drives and desires

and include the subordinates to act in a desired manner.

Again, motivation can be defined as the process that account for an

individual’s intensity, direction, and persistence of effort toward attaining a goal. The

three key elements in this definition are important.

Motivation-Hygiene Theory –

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This theory is also called two-factor theory of motivation and was proposed by

psychologist Fredrick Hertzberg. According to him, Intrinsic factors such as the work

itself, responsibility, and achievement, seems to be related to job satisfaction, while

Extrinsic factors such as supervision, pay, company policies, and working conditions

are associated with dissatisfaction.

Findings:

GPH ISPAT LIMITED. Follows the two factor theory of motivation. They

usually give the importance in to the intrinsic factors of the employees. Intrinsic

factors or Motivational factor which is related to job satisfaction such as recognition,

growth, advancement, work itself and achievement etc. The organization motivates

the employees by the following things:

Handsome basic pay

Extra allowance

Increment in basic pay

Job security

Job status

Good behavior

Better working environment

Promotion\Demotion:

A promotion is the movement of an employee to another job at a higher level,

normally to one that carries increased prestige, pay and performance requirements. On

the other hand, promotion is the advancement of an employee to a better job- better in

terms of greater responsibility, more prestige or status, greater skill and especially

increased rate of pay or salary. There are basically three factors as a basis for

promotion.

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They are:

Merit

Seniority

Merit & Seniority

Findings:

GPH ISPAT basically considers the merit and seniority as a basis for

promotion of an employee. In this system, experienced and senior employees both are

satisfied. As a multination organization it is essential and effective.

Interpersonal Relationship:

It improves employee’s morality and organization’s citizenship. GPH ISPAT

LIMITED. Improves their interpersonal relationship through party, meeting,

counseling, annual picnic and official festival.

Fringe Benefit:

Fringe benefit can be constructing to include all expenditures designed to

benefits employees over and above regular based pay and direct variable

compensation related to output.

In our practical findings, GPH ISPAT LIMITED. provides such fringe

benefits.

There are a lots of fringe benefits which are provided to the employees by this

company. They are :

1. Rest room

2. Reward for long service

3. Uniform

4. Medical facilities

5. Hazard protection

Management-Workers Relationship:

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Management and worker relationship are good which indicates high job

satisfaction. Good relationship also indicates high morality, productivity and group

cohesiveness in this team-oriented organization. GPH ISPAT LIMITED follows

counseling, training in order to establish good-management relationship.

PART - 4

M A R K E T I N G M A N A G E M E N T

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PART-4

MARKETING MANAGEMENT

MARKETING:

Marketing embraces all the business activities involved in getting commodities of all

kinds, including services, from the hands of producers and manufacturers into the

hands of final consumers. GPH ISPAT LIMITED also practices the marketing

management as their marketing mix. But they do not follow the traditional marketing

strategies because it is a 100 % export oriented manufacturing company.

Production and Product line:

GPH ISPAT LIMITED is basically a Bicycles manufacturing company. It actually

produce Still based on buyers requirements.

Target Market:

The process of evaluating each market segment, attractiveness and selecting one or

more segments to enter the present market is known as the target market.

In GPH ISPAT LIMITED, there target market is especially for foreign market. They

are marketing their products to CHINA,INDIA and according with requirements.

Sales Target:

The sales target is fixed by the marketing department. In that case, it is

ascertained the target in the different terms of period such as monthly, half yearly and

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yearly shipment. Another is to make shipment according to their demand. The target

sales or export and the actual performance of the company are the year wise report.

Promotional Measures:

Promotional decision occupies significant position in the element of marketing mix

skillful promotion can help to increase sales export in the market and to create

expected level image. GPH ISPAT LIMITED attaches much importance to

promotional activities. Three types of promotional program simply taken of the

company deserve mention:

1. Sales promotion (Export or trade oriented)

2. Customer or buyer oriented

3. Online based

Sales Performance and Policies:

Selling is the best marketing task of a company. GPH ISPAT LIMITED lays

stress on promoting sales position of the company. It always makes concerned efforts

to achieve expected sales and keeps the supply position steady. Since GPH ISPAT

LIMITED is 100% export oriented company so it always tries to develop the sales on

global market.

Grading Concept of the Company:

This case has taken by the company in regard to the products. It is followed on

the capable of being divided assorted, group or classification in to certain common

lots that show similarities. We observed that GPH ISPAT LIMITED maintains

grade very strongly on their products size and quality.

Market Structure:

GPH ISPAT LIMITED is a production oriented manufacturing concern. The

nature of production is Still. .

Production Performance and Analysis:

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The production target for the whole year is controlled by the marketing

department. The annual target is divided as weekly basis. The change in

manufacturing target is occurred from time to time as per the change of the world

market situation. In order to ensure the requirement of production target regarding

product quality and quantity a weekly and regular review is made.

Advertisement:

The company does not follow any advertisement strategy, only for creating

Market demand GPH ISPAT LIMITED always maintains product quality.

Transportation:

Transportation is a necessary function of marketing because most of the

markets are geographically separated from the area of production. On the basis of

products, there is required the various types of mode of transports to the place of

consumption. In this context the company likes the sea, air and land transportation to

carry on their products. But the company normally prefers the sea transportation

because it contains the large volume of products at a time.

PART – 5

M A N A G E M E N T P R A C T I C E

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PART-5

MANAGEMENT PRACTICES

Goal or Objective:

GPH ISPAT LIMITED considers production for setting organizational goal

and objectives. Company has establishing rules, procedures, policies or strategies but

do not encourage participative decision-making.

MISSION:

The mission or purpose identifies the basic function or task of an enterprise or

agency or of any part of it. Every kind of organized operation has, at least should have

if it is to be meaningful, purposes or missions.

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In our practical findings, the main mission or purpose of GPH ISPAT

LIMITED is to create or increase profit as a production oriented company.

Specialization:

This company follows work specialization for every employee. Work

specialization refers to every employees should specialized in the particular field.

GPH ISPAT LIMITED does not emphasize generalization.

Policies and Procedures:

One of the most comprehensive definitions of policy refers to the

determination of basic long term objectives and of courses of action and allocations of

resources to achieve these aims.

Decision Making:

Decision making is defined as selection of a course of action from among

alternatives. Decision making may be either centralized or decentralized. The decision

making process of GPH ISPAT LIMITED is centralized by the authority. The lower

level managers can not participate in the decision making.

Span of Control:

The number of subordinates a manager can effectively and efficiently direct.

Wider span are more efficient in term of cost. However at some point wider pan

reduce effectiveness. That is, when the span becomes too large, employee

performance suffers because supervisors no longer have the times to provide the

necessary leadership and support.

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PART – 6

F I N A N C I A L M A N A G E M E N T

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PART-6

FINANCIAL MANAGEMENT

Financial Planning Process:

Planning involves selecting missions and objectives and the actions to achieve

them, it requires decision making. GPH ISPAT LIMITED also has a strong financial

planning process in which the authority has to formulate these plans. Most of the

times top-level management makes decisions.

Financial Statement:

Financial statement is a statement that contains the financial transactions for a

specified time period. Every company has various kinds of financial statements but

the company did not provide any kind of financial statement because of their financial

secrecy.

Capital and Capital Structure:

Foreign investment is the main source of capital of the company. The capital

structure normally follows paid up capital. Since the company is always export

oriented so the source of capital must be the foreign investment.

Findings:

The company does not provide any type of financial statement due to their

business secrecy.

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Market Share

GPH ISPAT LIMITED does not enter share market

Short term and Long term Financing:

Most of the company use short term financing to meet their financial

requirements, while long-term (long term dept and equity) is used to meet long-term

capital requirement. There are four basic source of short term financing.

1. Account payable

2. Bank loan

3. Commercial paper

4. Accruals

GPH ISPAT LIMITED always uses the short term finance from company’s own

sources. Long term finance is basically supplied by foreign investment.

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PART – 7

C O N C L U S I O N

33

CONCLUSION

This report of industrial tour emphasizes the management practices of GPH

ISPAT LIMITED. In this discussion, we observed that the company usually

practices the sound management in their working environment. And we also observed

that the company always very much conscious about the human rights. The code of

conducts of the company which were mentioned earlier indicates that clearly. The

human resource management department of the company is also apparent in view of

the employee concern.

However, this tour has helped me to learn a lot of practical knowledge about

the management practices of the reputed multinational company. Finally, I would like

to render gratitude to my honorable teacher and supervisor Tarana Aziza Khan

Lecturer, Department of Management, Northern University bangladesh, for arranging

this program.

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BIBLIOGRAPHY

NAME OF BOOKE AUTHOR

PERSONNEL MANAGEMENT EDWIN B. FLIPPO

PERSONNEL ADMINISTRATION PAUL PIGORS & CHARLES A. MYERS.

THE HANDBOOK ON SERVICE & CODE OF CONDUCT

PUBLISHED BY - THE

YOUNGONE HUMAN RESOURCE

DEPOARTMENT.

PERSONNEL MANAGEMENT S. A. HAQUE

ESSENTIAL OF MANAGEMENT HEROLD KOONTZ.

MARKETING MANAGEMENT PHILLIP KOTLER

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