Internship Report

Internship Report

Industrial Relationship Department,Packages Limited

Submitted To: Industrial Relationship (IR) Department

Submitted By: Khalil Ur Rahman Internee, IR

ACKNOWLEDGEMENT

First of all I would acknowledge ALLAH ALMIGHTY whose blessings are always there to guide me and lead me towards successes and accomplishments in life. Before starting my report I would like to thanks the officials and management of Packages Limited, who provided me a wonderful opportunity of learning in such a big organization. I would also acknowledge the support and guidance that my supervisors provided me throughout my internship period.I would like to express my sincere gratitude to, Mr. Akram (IR Manager), and Mr. Imran Ellahi (Assistant Manager) who provided me opportunity to work in the practical environment and His constant encouragement, sincere advice, suggestion andimport ant discussion to valuable accomplish of my training program. Withouttheirguidance, I would never be able to gain the confidence and precision in my work. I would also like to pay my gratitude to all the people, without whose input this report could not have been completed. And, of course, I am most indebted to my parents without their support, encouragement and prayers this work would have never been possible.

EXECUTIVE SUMMARY:

This Internship report will be describing the industry profile of Packages Ltd, that in which industry they are in and how that industry is working. This summary also comprises of Packages Ltd.s company profile describing all the information of the company that what it is about what it does, where it functions and how well it is going. The report also shows the way the business process happen in the Packages Ltd. What are the different departments in Packages Ltd.? And how they work with each other. The SWOT Analysis will tell the strengths of company which get laden due to some weakness. As we are in Pakistan there are many threats to a business, hence Packages capitalizes on the opportunities to defeat all the threats to make everything go their way. Hence its a comprehensive view of the strengths overcoming the weaknesses and the threats minimized by using the opportunities.Atlas but not least, the report tells the problems that company faces. And how can they solve them, as no business can work wonders without finding gaps and helping themselves to attain and maintain a better position in the industry. Hence the report mentions many tiny problems which need attention in order to further best in the industry.

INTRODUCTION OF PACKAGES LIMITED

Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden, Packages Limited provides premium packaging solutions for exceptional value to individuals and businesses in the most efficient, profitable and sustainable way. We offer a complete range of packaging solutions including offset printed cartons and flexible packaging materials to individuals and businesses world-wide. Our clientele includes illustrious names such as Unilever and Pakistan Tobacco Company, who have been our customers for over 50 years. We employ over 1500 people and had sales of over US $ 141 million in 2013.Listed on all three stock exchanges in Pakistan, Packages Limited has maintained a long-time credit rating of AA. Our joint ventures and business alliances with some of the world's biggest names reflect our forward-looking strategy of continuously improving customer value through improvements in productivity.Packages has always been at the forefront of new developments in packaging research and has pioneered several innovations, including the use of wheat straw as a raw material for paper and board manufacture.Packages is an economically significant company.

OVER THE YEAR

Packages Limited was established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden to convert paper and paperboard into packaging for the consumer industry.

Over the years,Packages has continued to enhance its facilities to meet the growing demand of packaging products.

In 1968,with IFC participation, Packages integrated upstream by establishing a Pulp and Paper Mill with a capacity of 24,000tons per year based on waste paper and agricultural by-products i.e. wheat straw and river grass. With growing demand the capacity was increased periodically and in January 2003, total capacity was nearly 100,000 tons per year.

In 1981,Packages modified a paper machine to produce tissue paper in response to growing awareness and demand for hygienic and disposable tissues. The Rose Petal brand name was launched with facial tissues and was later expanded to include toilet paper, kitchen roll, and table napkins.

In 1986,the Company established a flexible packaging unit to cater to the increasing demand from consumers for sophisticated packaging used primarily in the food industry.

In 1993,a joint venture agreement was signed with Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in Hatter, KPK. This project, Tri-Pack Films Limited, commenced production in June 1995 with equity participation by Packages Limited, Mitsubishi Corporation, and Altawfeek Company for Investment Funds, Saudi Arabia and general public. Packages Limited owns 33% of Tri-Pack Films Limited equity.

In July, 1994,Coates Lorilleux Pakistan Limited (currently DIC Pakistan Limited), in which Packages Limited has 55% ownership, commenced production and sale of printing inks.

During the same year, the Company initiated the capacity expansion of its Paper and Board Mill to 65,000 tons per year and conversion capacity to 56,000 tons per year. At the same time, the Company also upgraded the quality of Packages products and substantially improved pollution control to meet the World Bank environmental guidelines. The said expansion was completed in 1998 at a cost of PKR 2.7 billion.

In 1996,Packages entered into a joint venture agreement with Print care (Ceylon) Limited for the production of flexible packaging materials in Sri Lanka. The project Packages Lanka (Private) Limited, in which Packages Limited has79% ownership, commenced production in 1998.

During 1999-2000,Packages successfully completed the expansion of the flexible packaging line by installing a new rotogravure printing machine and enhancing the carton line by putting up a new Lemanic rotogravure inline printing and cutting creasing machine. In addition, a new 8 color Flexo graphic printing machine was also installed in the flexible packaging line in 2001.

Packages commenced production of corrugated boxes from its plant in Karachi in 2002.

In 2005,the Company embarked upon its Paper & Board expansion plan at a new site 'Bulleh Shah Paper Mills'(currently Bulleh Shah Packaging (Private) Limited), almost tripling its capacity from 100,000 tons per annum to 300,000tons per annum. Capacity expansion at Bulleh Shah Paper Mills was completed in two phases. In the first phase, Brown Board Machine PM-6 along-with high yield straw pulping & OCC plants and its back processes such as 11 MW Power House, Gas Turbine and Primary Effluent Treatment Plant were capitalized and commercial operations were commenced during the year 2007. Second phase comprising of Writing and Printing Paper Machine PM-7, De-inking Pulp Plant, 41MW Power House, Steam Turbine and Secondary Effluent Treatment Plant was completed in the year 2009.

In 2008,the Company embarked upon capacity expansion in its tissue division through installation of a new tissue paper manufacturing machine PM-9 with production capacity of 33,000 tons per annum. With this capacity expansion, the Company is now in a position to take benefit from export potential of tissue products in the international market, particularly the Middle East.

During 2011,a lamination machine was installed in the flexible department at a cost of PKR 96 million. This is Pakistan first high speed solvent-less automatic lamination machine. It has turret winders for automatic reel and a capacity of 450 meters per minute.

The rebuild project of Paper Machine PM-6, installed at Bulleh Shah Paper Mills, was completed in the second quarter of 2011 leading to capacity expansion of 30,000 tons. The machine started commercial operations with enhanced capability of producing high value added liquid packaging and bleached board.

Moreover, the Corrugator Machine in Kasur Plant was upgraded in 2011 to improve efficiency, reliability, enhance capacity and reduce waste. This upgrade activity resulted in increased capacity of 14%.

In 2012,to enable continuous growth and technical development in the Paper & Paperboard segment, Packages signed a 50/50 Joint Venture agreement with StoraEnso OYJ Group of Finland in its 100% wholly owned subsidiary, Bulleh Shah Packaging (Private) Limited. The Joint Venture included Paper & Paperboard and Corrugated business operations at Kasurand Karachi and involved initial equity participation by Stora Enso OYJ Group of 35% by way of subscription of right shares with a commitment to increase the shareholding to 50% at a later stage.

In the same year, Packages also invested in a New Rotogravure Machine for its Flexible Packaging Business with a total estimated project cost of PKR 326 million as part of the Company's efforts to remain abreast of improved technological developments in the Packaging business.

The Joint Venture Agreement with Stora Enso OYJ Group, signed in 2012, was implemented in2013and Packages completed the transfer of assets and related obligations of Paper & Paperboard and Corrugated business operations to Bulleh Shah Packaging (Private) Limited along with cash equity injection. Packages now holds 65% equity in Bulleh Shah Packaging (Private) Limited. The joint venture partner, StoraEnso OYJ Group, is actively involved in providing technical expertise to further enhance the Paper &Paperboard and Corrugated business operations.

CORPORATE STRUCTURE

Packages Limited has two main manufacturing divisions: The Packaging Division, provides multi-dimensional and multi product packaging solutions to clients that are involved in manufacturing consumer product across industries. The Consumer Products Division, which manufactures off-the-shelf branded consumer productsPackages Lanka is a joint venture between Packages Limited and the Print Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages Limited and Dainippon Ink and Chemicals, Inc. of Japan.Packages Lanka is a joint venture between Packages Limited and the Print Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages Limited and Dainippon Ink and Chemicals, Inc. of Japan.

ORGANOGRAM

Board of DirectorsAdvisorManaging DirectorExecutive BoardGeneral ManagerM.I.S ManagerProduction ManagerR&D ManagerAdmin.ManagerPower ManagerE.H&S ManagerMechanical ManagerCost & tax ManagerMill ManagerFinance ManagerDeputy G. ManagerH.R.D ManagerCommercial ManagerMarketing ManagerStore ManagerI.R Manager

VISION

Position ourselves to be a regional player of quality packaging and consumer products. Improve on contemporary measures including cost, quality, service, speed of delivery and mobilization. Keep investing in technology, systems and human resource to effectively meet the challenges every new dawn brings. Develop relationships with all our stakeholders based on sustainable cooperation, upholding ethical values, which the shareholders, management and employees represent and continuously strive for.

MISSION STATEMENT

To be a leader in the markets we serve by providing quality products and superior service to our customers, while learning from their feedback to set even higher standards for our products.

To be a Company that continuously enhances its superior technological competence to provide innovative solutions to customer needs.

To be a Company that attracts and retains outstanding people by creating a culture that fosters openness, innovation, promotes individual growth, rewards initiative and performance.

To be a Company which combines its people, technology, management systems and market opportunities to achieve profitable growth while providing fair returns to its investors.

To be a Company that endeavors to set the highest standards in corporate ethics in serving the society.

CORE VALUES

Underlying everything we do and everything we believe in is a set of core values. These guide us to deal with every aspect of any issue we might encounter in our personal and professional lives. These values help us grow inside & outside, personally and as an organization.Good GovernanceWe are committed to running our business successfully and efficiently, providing long-term benefits to our employees and shareholders, and enriching the lives of those whom we serve by fulfilling our corporate responsibility to the best of our ability. We expect excellence from all processes, whether they relate to policy formation and accounting procedures or product development and customer service.Work EnvironmentWe are committed to running our business successfully and efficiently, providing long-term benefits to our employees and shareholders, and enriching the lives of those whom we serve by fulfilling our corporate responsibility to the best of our ability. We expect excellence from all processes, whether they relate to policy formation and accounting procedures or product development and customer service.Good GovernanceOur policies and core values are aimed towards creating an informal yet stimulating team-oriented work environment with a culture of sharing and open communication. We cherish the diversity of viewpoint of every individual; we realizes this encourages innovation and develops character. All employees have the right to a stress and injury free work environment. We ensure our employee health and safety by providing various in-house facilities such as a gym and making sure that all staff understand and uphold our safety policy.All our employees are permitted and encouraged to afford time and attention to personal concerns.Our PeopleThe success of any organization is largely dependent on the people working for it. Each member of our team is considered equally important and provided constant training, motivation and guidance. We possess a dedicated staff of the highest caliber committed to making our business a success. We ensure that every employee has the opportunity for maximum professional development. To achieve this goal, we seek to provide challenging work prospects for all employees. Each person is compensated and rewarded for his or her performance and hard work on a strict merit basis.ConservationWe expect and encourage our employees to actively participate in community service and to take care of the environment entrusted to us as citizens sharing the earth resources.Customer SatisfactionWe are customer-driven; we go the extra mile to make sure our clients expectations are met and exceeded on every issue. We partner with leading companies to arm ourselves with the latest technology and provide customers with innovative solutions in the most cost-effective manner available.Ethical behaviorWe make it clear that being a sincere, honest and decent human being takes precedence over everything else. In the Packages family, there is an all-round respect for elders, tolerance for equals and affection for youngsters. Managers are expected to lead from the front, train junior colleagues through delegation, resolve conflicts quickly, be visible at all times and act as role models for others.WHISTLEBLOWING POLICYWe are committed to high standards of ethical, moral and legal business conduct. In line with our commitment to open communication, this policy aims to provide an avenue for employees to raise concerns and reassurance that they will be protected from reprisals or victimization for whistleblowing.This whistleblowing policy is intended to protect the staff if they raise concerns such as: incorrect financial reporting unlawful activity; activities that are not in line with Packages policy, including the Code of Conduct; or. activities which otherwise amount to serious improper conductWe make sure that all our processes and methods conform to the highest ideals of professional behavior. Our organizational structure is straight-forward and need-based; accountability is transparent, consistent and both horizontal and vertical.

BOARD OF DIRECTORS & MANAGEMENT COMMITTEES

Our people are our greatest asset. We seek and retain people who feel there is no compromising on excellence, and a corporate culture in which our family can grow and thrive. Heading our multi-talented team is our leadership of experienced senior management. Together, we know how to combine our skills and knowledge to deliver state-of-the-art solutions to our customers.BOARD OF DIRECTORS

Towfiq Habib Chinoy(Non-Executive Director) Syed Aslam Mehdi Rizwan Ghani Josef Meinrad Mueller Tariq Iqbal Khan Syed Hyder Ali(Chief Executive & MD) Shamim Ahmad Khan Muhammad Aurangzeb Syed Shahid Ali Veli-Jussi Olavi Potka

ADVISOR

Syed Babar Ali

COMPANY SECRETARY

Adi J. Cawasji

EXECUTIVE COMMITTEE

Syed Hyder Ali - Chairman Rizwan Ghani- Member

AUDIT COMMITTEE

Tariq Iqbal Khan - Chairman(Non-Executive Director) Shamim Ahmed Khan(Non-Executive Director) Syed Shahid Ali - Member(Non-Executive Director) Syed Aslam Mehdi - Member(Director & General Manager) Muhammad Aurangzeb(Independent Director) Adi J. Cawasji - Secretary

HUMAN RESOURCE AND REMUNERATION (HR&R) COMMITTEE

Towfiq Habib Chinoy - Chairman(Non-Executive Director) Tariq Iqbal Khan - Member(Non-Executive Director) Shamim Ahmad Khan - Member(Non-Executive Director) Syed Hyder Ali - Member(Executive Director) Syed Aslam Mehdi - Member(Executive Director) Kaifee Siddiqui- Secretary(Head of Human Resource)

SYSTEM & TECH. COMMITTEE

Rizwan Ghani - Chairman(Executive Director) KKhurram Raza Bakhtayari - Member(Chief Financial Officer) Suleman Javed - Member(Manager ERP)

BUSINESS ALLIANCES

One of the best ways for a business to leverage its products and increase growth is through association. Our business alliances help us manage our business more effectively, as well as helping us and our partners develop and diversify our interests. Customers also benefit from the increased knowledge base, as we transform our market awareness and shared technology into innovative and cost effective solutions for customers.Our community efforts reflect our corporate culture by building strength and value through mutual assistance and good will.

Subsidiaries, Joint Venture, Associates

DIC Pakistan Limited. Packages Lanka (Private) Limited. Packages Construction (Private) Limited. Anemone Holdings Limited. Bulleh Shah Packaging (Private) Limited. IGI Insurance Limited. Tri-pack Films Limited. IGI Investment Bank Limited. IGl Life Insurance Ltd.

DIC Pakistan Ltd.

Established in 1994, a joint venture between Packages Limited and Dainippon Ink and Chemicals Asia Pacific Singapore Pvt. Limited. Dainippon Inks and Chemicals is one of the largest printing ink manufacturing groups worldwide. Number of employees: 167. Non-listed public limited Company.Website:www.dic.com.pk

Packages Lanka Pvt. Ltd.

Packages Lanka (Private) Limited is based near Colombo, Sri Lanka. It is a joint venture between Packages Limited and Print care (Ceylon) Limited of Sri Lanka. This project was set up in 1998 for the manufacture of flexible packaging material. Packages Limited owns 79% of this company. The number of employees of the company is 142.

Packages Mall

Packages Construction (Private) Limited is a wholly-owned subsidiary of the Packages Limited. Packages Construction is undertaking the development of enclosed high quality shopping mall with food court, cinemas and retail outlets - Ground + 2 floors at the land available at Packages' site at Lahore. The built up area is 1.2 million Sq. Ft. The design and layout of the mall is based on inputs from international retail consultants and space shall be leased out and managed by a professional property management team.Total number of employees: 30.

IGI Insurance Ltd.

IGI was established in 1953. It had a gross premium of PKR 2.14 billion in 2014. Number of employees are 122. It acquired the insurance business of Pakistan branch of Royal & Sun Alliance Insurance Plc in year 2004 and a global network partner of Royal & Sun Alliance Insurance Plc. In April 2014 with the acquisition of MetLife Alico Pakistan, IGI Insurance Limited has entered into Life insurance sector under the banner of IGI Life Insurance Limited.Website:www.igiinsurance.com.pk

Tri-pack Films Ltd.

Tri-Pack manufactures Bi-axially Oriented Polypropylene film (BOPP) with an annual capacity of 82,300 Tones. Tri-Pack sales in 2014 were PKR 15.74 billion. The number of employees of the company is 436. Packages Limited has 33.3% ownership in the company while Mitsubishi Corporation of Japan holds 25% shares. The Company has production facilities in Port Qasim (near Karachi) and Hattar (Khyber Pakhtunkhwa). It is a listed Public Limited Company.Website:www.tripack.com.pk

IGl Investment Bank Ltd.

Established in 1990, IGI Investment Bank is licensed to carry out investment finance and leasing operations as a Non-Banking Finance Company. In addition, it also offers corporate finance and advisory equity brokerage, portfolio management and mutual funds advisory services. It is a listed Public Limited Company.Website:www.igiinvestmentbank.com.pk

IGl Life Insurance Ltd.

With the acquisition of MetLife Alico Pakistan in April 2014, IGI Insurance Limited entered into Life insurance under the banner of IGI Life Insurance Limited. IGI Life had gross premium of PKR 2.5 billion in 2014. Total number of employees: 123. It is a listed Public Limited Company.Website:www.igilife.com.pk

Flexible Packages Convertors

Flexible Packages Convertors (Pty) Ltd ("FPC") is a highly specialized print and packaging operation, manufacturing technically advanced mono-layer and co-extruded flexible packaging material to meet the exacting specifications of its extensive blue-chip client base. Packages Limited has entered into a JV with the previous owners and holds 55% shareholding in the new set up. The company is setup in South Africa.Established in 1998, the business provides high quality printing augmenting its finished product, thus offering a unique combination of both print and manufacture within a lucrative niche industry. The company's core focus is vested in flexible packaging used in the FMCG sector. Standard offerings include sheeted, tubular, and center-folded and bag shaped products. The company owns a 50% shareholding in Plastic Extrusions (Pty) Ltd (1967/008117/07), who in turn holds the patent for a highly lucrative sugar liner patent that is used extensively by customers such as Illovo, Royal Swazi Sugar and TSB.

Upcoming Project - Joint venture with OMYA

In the Board of Director's meeting held on April 22, 2015, Packages Limited announced to start a joint venture (JV) with Omya Group of Switzerland. Omya is a leading global producer of industrial minerals - mainly fillers and pigments derived from calcium carbonate and dolomite - and a worldwide distributor of specialty chemicals. The JV will set up a production facility in Kasur to supply a range of high quality ground calcium carbonate products specifically tailored to meet local and regional markets.PRODUCTS OF PACKAGES LIMITEDPackages products are divided into four units.

BUSINESS UNIT - FOLDING CARTONS (FC)The Folding Cartons (FC) production unit is as old as the Company itself representing the culture and history of Packages Limited. It all started with simple offset printing, cutting and creasing machines in 1957. Later, the business grew and the Company set up a board mill for producing different types of white boards which were then printed and converted through the offset department. A professional sales and operations team was instrumental in making this department a success and business expanded over the years.Packaging material is being supplied to tobacco, food, soap and detergents, pharmaceutical, match and shoe industry. New hardware was added at regular intervals to maintain and enhance the competitive edge. Back end investments were made to improve the speed, turnaround time and quality of the finished packaging.TECHNICAL EXPERTISEComputer-to-plate, laser cutting, creasing die making system and support hardware was added and upgraded to maintain the competitive edge. Another synergetic business that evolved and grew over the years is paper cups both for drinking and ice cream. A full-fledged department in the business unit equipped with European best cup making machines convert our own food grade cardboard, polycoated in-house, printed and cut creased into different shapes and sizes of paper cups. Another unique and environment friendly activity of this department is 100% re-cycling of the planned and process waste of board, i.e. the basic raw material.Keeping up with the growing demand of specialized and high quality tobacco packaging, two new roto gravure printing machines with cutting, creasing and embossing facilities have been added. Both the offset and rotogravure lines have an annual conversion board capacity of 30,000 tons. Business Unit Folding Cartons with a strong back integration, state of the art hardware, and in-house press facilities, dedicated, qualified and professional trained manpower is geared to provide high volumes, consistent quality and value addition at a competitive price.

INDUSTRIES Food and Beverages Soap / Detergent Pharmaceuticals Match Electronics Shoe Tobacco Paper Cup

BUSINESS UNIT - CONSUMER PRODUCTSWe provide a range of Tissue paper products to serve and support the need of disposable cleaning. Our aim is to provide convenience for a hygienic lifestyle by innovating products that contribute to diverting dirt and germs away from you, give you daily confidence and keep you at your best. We have been delivering our brand promise of uncompromised quality for almost 30 years and continue to lead the tissue category by offering premium tissue products in several diverse categories.

TISSUE PRODUCTS Facial Tissue Tissue Roll Kitchen Roll Rose Petal Hi-jeen Hand Towel Rose Petal Pocket Packs Rose Petal Party Products Wet Tissues

AWAY FROM HOME PRODUCTSWe also have a leading market share in the away-from-home business: we supply custom-printed boxes, table napkins, coasters and paper cups to institutions such as hotels, fast food chains, restaurants, businesses and the airline industry.INCONTINENCE PRODUCTSWe MarketTENA Adult Diaperslocally under a licensed agreement with SCA, Sweden. SCA is the worldwide leader in the management of incontinence. Providing products and services for individuals and healthcare services in over 100 countries. TENA Adult Diaper promises unmatched quality in the areas of leakage protection, comfortable fit, outstanding dryness, excellent retention and odor control.

MECHANICAL FABRICATION & ROLL COVERSFormed in the year 1957, the department has been providing services in Packages to all the business units. Starting from the Paper and Board mill to the Tissue line, we have been providing services for each of our top quality products. Catering to the exceedingly growing rubberizing need, an in-house fully equipped rubberizing facility came into being. After successfully fulfilling all the technical requirements of the business units in Packages, we took a leap forward and introduced our services to the market as well.

INDUSTRIES Agriculture Textile Food & Beverages Paper & Board Printing (Roto, Offset & Flexo) Inks Oils & Chemicals Leather & Sports HVAC Pharmaceutical

Paper and Bored:Packages Limited has been producing high quality paper and board since 1965 using environment friendly manufacturing processes. They specialize in making a variety of duplex boards and paper. Their products are tested for high performance in terms of strength, stiffness and gloss. From coffee cups to books we read, from Tetra Pak juice containers to huge shipping containers, paper and board products touch our lives in a thousand ways every day.

Paper:Paper quality and weight is determined by the clients specific requirements and Packages ensures this is carried out to the exact specifications provided. Some of the paper produced by Packages Limited includes: High gloss writing paper Special poster paper/ machine glazed Liner for shipping cartons Wood-free writing/ printing paper

Board:Packages Limited manufactures several types of boards. Food Board, a basic raw material in liquid food packaging, is being manufactured since 1979 for Tetra Pak Pakistan Limited. This material is used for making aseptic packaging for milk, cream, oil, fruit juices and other perishable food items. Some of the board products of Packages Limited include: Liquid packing board Food grade board Duplex board/chipboard Bleached board/liner board Cardboard/ tobacco board

Flexible Business Unit: With improved barrier properties and lower cost compared to rigid packaging, flexible packaging is steadily gaining importance in the packaging industry. The flexible line makes high quality packaging films and laminates, and offers other specialized services such as rotogravure printing and sleeve-making.

Flexible packaging combines different plastic films, aluminium foil and paper to produce laminates of two or more layers for providing layered protection against moisture, gases and odours. Used where colourful package design and preserving product quality are important, such as in the food and pharmaceutical industries, flexographic printing offers economy with quality. Some of the products where the flexible packaging is used are as follows.

Soap

Tobacco

Tea

Food

Diary Ice-Cream

Milk powder

Confectionery

Shampoo

Pesticide

Pharmaceutical

OVERVIEW OF THE INDUSTRIAL RELATION DEPARTMENT

HR and IR are interlinked with one another; they are considering the backbone of the organization. The success of an organization is dependent upon a successful personnel department.The prime objective of this department is to manage and utilize the human resources in a profitable manner. Hierarchy of IR Department

INDUSTRIAL RELATIONSHIP

WAGESSALARYTIME MANAGEMENTINCENTIVEESTABLISHMENTCOMPENSATIONWELFARELAW

Establishment Wing:

Mr. Abdul Gaffar ( Assistant Personnel Officer Establishment) Mr. Waqas Khan ( Assistant Personnel Officer Establishment)

It is the important wing of the department and is performing important functions. It keeps the records of the employees. It plays an important role between the employee and management.After test and interview file is passed to this section. Employee personal file is kept by this section right from their hiring till end of their service.The file is consisting of the test which employee gives for the job, appointment letter, personal information, medical fitness report, copies of educational documentation and joining letter. The file documents keep on increasing and updating like transfers, allowances, termination, resignations, increments and many more.All the information of employee is entering into the system, the software they are using is SAP than software allocates the employee number.Identity cards are prepared for all the employees either permanent, contract or temporary.Internee card are also prepared by this section.If an employee is absent for ten days or more than ten days without leave then he is issued a letter of charge which follow in the different category an absence report is delivered than a letter of charge so after that an inquiry is conducted against that member after the result of that he may be terminated or dismissed or a warning letter will be issued. The employee is given the 4 warnings against its absent.

Incentive Wing:

Mr. Tariq Saeed (Personnel Officer) Mr. Shafqat Ali (Establishment Assistant)

Incentives are for those labors working in production or unit, it is calculated when the given target overdoes from the target assigned to them. Manufacturing units record the targets on the production card. Specific incentive formula is set for calculation. The formula is:

Production * 100 /Base Rate * Running time -100

At this wing work is done in different steps which are: Cards are arranged date vise. Than they are arranged shifts vise i.e. (1st, 2nd, 3rd). Next step arranged machine number vise. Batch cards are attached with the cards on which date, dept. Code, and shift have to be mention. Last but not the least, on batch card the each shift data has to be mentioning the total number of cards in the shift and total production. The data is entered into SAP. Data is entered into two period of month i.e. first period is from 1st to 15th and second period is from 16th to end of month. Each employee incentives cards are prepared. Statements of production of worker are sending to their departments after 15 days for the verification.

Salaries and Wages Wing:

Muhammad Raiz Adil {Personnel Officer Establishment, Bulleh Shah Packages (Monthly Staff)} Younas Mehmood {Personnel Officer Establishment, Packages Ltd Lahore (Monthly Staff)} Athar Hussain {Establishment Assistant, Packages Ltd Lahore (Hourly Staff)}By using the system the performance of the labor force is easily evaluated. As the pay of an employee is directly proportional to the time worked, it enhances the motivational level of employees. It is the largest wing of the department and is performing important functions. It keeps the records of the employees, calculates the wages and salaries, for employees. The record keeping is very scientifically organized. There are two types of employees in Packages. Employees Working On Monthly Basis. Employees Working On Hourly Basis.Employees working on hourly are X1 and on salary are X2, X3, and X4.X1X2X3X4

A, B, C, D (WORKERS)1 To 5 (WORKERS)MM3

P, P2, P3JE, JE1 (EXECTUIVES)M1M4

E, E1,E2,E3M2GM, MD

TECHNICALTE, TE.1,TE.2,TE.3,TE.4,TE.5,TE.6,TE.7,

PROCESS SPECIALISTS1, S2, S3

Temporary Workers:Workers on hourly basis get their wages through a card that contains the starting time of work and ending time. The work is noted through punching machine. The total working hours of employees are calculated and payments are made to them.

Monthly Staff: A gate pass is issued to the employees if they go out of the factory for any personal/official work. They submit the gate pass to gate office; than a gate pass is sent to the time office so over there data is enter into the system. A gate passes are set into three classes i.e. are short leaves, officials and overtime. If the gate pass time exceeds 8 hours, a leave is deducted from the employee record of that employee who is paid on monthly bases. On daily basis gate passes are checked and enter in system.Employees are given different types of leaves which have different codes, so a code helps when the data is transferred to the system. Daily the data is enter into the system, the section is using the SAP and Time Wizard softwares. The following are the leaves which company is offering to their employees.LeavesCode

Annual leave0100

Casual leave0200

Medical leave0300

Special leave0400

Rest0500

Tour0600

Leave w/o pay0700

Social security leave0800

Absence0900

Medical leave full1000

Medical leave half1001

Special leave 25% Gross2000

Special leave 50% Gross2001

Special leave 100% Gross2002

Compensatory leave5000

When all three leaves (annual, casual and medical) of the employee will be nil, if he want medical leave then he will be given the special leave 25%, 50% or 100%. If the employee who is on contract does not inform about his leaves then he will be consider absent and his salary would be stopped. All types of leaves are checked before running the salary of employee.

Clearance Certificate:Is also issued by this section when the employee service is over, he got terminated or he resigned and transfers to the accounts office after the completion of procedure. Basically this document required the clearance of dues or documents from following departments: Welfare department Fair price shop Gate office Telephone department Store Electrical Workshop

Final Settlement:It is also prepared by this section. When employee is retired from the job he is paid the salary of next three months. All the allowance are also paid like house rent, conveyance and many more except the telephone allowances. The total numbers of annual leaves left are also paid to the employee by calculating through this formula i.e.

Gross Salary /Total days of month *Annual leaves left

Pay Slips:Before transferring the salary to employee accounts pay slip is deliver to each employee on which all the detail is mention that how much they have earn and what are their deductions and the quota of leaves they utilized and left are also mention. For monthly workers no. of days they worked and for hourly workers no. of hours they worked are mention.The both section is performing different work on daily, weekly, monthly and yearly basis.Daily:On daily basis they are performing the following work like: Posting leaves and short leaves on daily basis. Posting the compensatory leaves record. Maintain the correction of attendance. Filing the paper of employees in their files. Arrears adjustments back dated leaves short leaves absent over time night shifts. Final settlements and clearance certificates of the employee of packages and Bulleh Shah are issued. Edit checking of the employees leaves posted. Checking the mails some of employee send online their leaves, Only for Bulleh Shah. Encashment of advance leaves.Weekly: Sending the absent report of the employees to their department. Doing amendment in checking the leaves. Maintain the personal file of employee. Doing the adjustments of shift either morning, evening or night. Checking the absent continue of employee.Monthly: Rest and tours of employee are checked. Absent reports are sent. Over time of employees are checked. Data of fair price shop is checked. Preparing the salary pay slip of employees, printing it and sending to the employee. Pay slip filing of employee. Running the salary of employee. Printing the pay slip of that employee who is not having their accounts because they are hired new so they are given cash payment.Yearly: Checking leave quota. An increment slips filing. Consolidated leaves balance are checked for contract employee. Leaves balance closing. Leaves balance opening.

PLANNING TOOLS AND TECHNIQUES THE RESEARCH DEVELOPMENT AND CONTROL DEPARTMENT

Planning ahead is what keeps Packages Limited on top of its game. The research, development and control department assists in this section of the planning process at Packages Limited. If the industry wants to grow not just survive, then it should take care of its Research and Development Department. Development in Packaging material is a continuous process. New materials, films, fibers, chemicals, adhesives and coating always are researched and developed. As Packages Limited wants to retain clients, stay out of court and improve profits, so it gives much consideration on quality of the product. To keep up with new demands, Packages Limited has a Research, Development and Control Department. This department works in close collaboration with Production and Marketing departments. This department has well equipped laboratories and pilot machines, which are used to test various chemical raw materials and machines. It enables Packages Limited to provide better quality and latest packaging to the consumer industry, enabling it to introduce new product lines an develop new materials. The Research, Development and Control Department have three major areas for its activities:

RESEARCH:This section is directly responsible to the Production Manager about his research. In Research, work is done with on the idea, experiment is divided into parts and on each part attention is focused and conclusions or suggestions are given. Packages Limited tries to get as many information and technology which is possible and beneficial to the organization. All such information is collected for research. Some time they receive reports of customers problems and complaints from Marketing Department and advice to them through the same channels.

DEVELOPMENT:Development is a continuous process in any organization. A lot of development is the result of feasibility studies, study of new production methods and new products. Packages Limited has a Paper & Board Mill, so it uses largest number of chemicals. The Environment Protection Agency has some standards for reducing pollution. The R &D and Control Department developed new way of reducing pollution and always tries to meet EPA standards.

CONTROL:Packages Limited R&D & Control Department divides term CONTROL into two areas:

Quality is synonymous with Packages limited. Every package made by Packages Limited guarantees the use of quality materials and processing. This is all due to the strict quality Control Standards, observed at every stage of the production, from raw materials to dispatch Department. This department makes stringent requirements on quality control, which help in working consistently towards attaining better results for customers. To ensure constant quality and improvement this department managed by qualified scientists. Quality Control section has satellite laboratory in every department, which constantly monitor and report. There is on the spot checking and corrective treatment is given to the operators. If the percentage of defective material goes above the permissible limit, the supervisor and machine operator is given a signal to take corrective action.

In Process Control, the process of production is carefully monitored. Samples from every department, e.g. Pulp Section, Beater House etc. are taken to quality control department and tested for standard. R&D & Control Department is divided into different sections for copying different types of problems. The sections are: Rubber Section Physical Paper & Polly Packing Section Pulp Section Chemical Section Development Section Microbiology Section Library

CONTINGENCY PLANNINGThere is always a need for a backup plan in case of sudden changes in any factor. In our visit to the factory of Packages limited we talked to the Logistics Manager, Finished Goods and this is what we found out about the contingency planning in the logistics department.

LOGISTICS DEPARTMENTEach department of Packages Limited operates under its own rules and regulations and has control over the planning of their own departments. The logistics department is basically responsible for transferring the goods from the factory to the customers. At times the transportation is unavailable due to the drivers not being present or the vehicle not in a position, in such cases the logistics have back up vehicles ready to ensure that the products reach the customers on time.

ORGANIZING

The organizing of each department is done separately as each department is responsible for their own unit. The division of work in Packages Limited is done by allocating the right human and financial resources to the right department. Being an organization of as high a stature, there are departments to cover all aspects of the business. From production, planning, marketing to human resource departments as well as Industrial Relations, Logistics, Legal and procurement. The specific design elements of the formal structure of the organization chart depend upon the departmental technology in Packages and vary from department to department.ORGANIZATIONAL STRUCTUREFORMALIZATIONFormalization is high in departments with routine technology like sales and production. People carry out their specialized tasks that are governed by formal rules, whereas in Research and development, strategic planning, and human resource and development departments, structure is less formal. These departments have o perform activities with a lot of variety so lesser number of formal procedure is followed.

STANDARDIZATIONUniformity in work activities varies from department to department. As mentioned above, Departments like R&D, Marketing and HR&D have routine plus non-routine activities to perform but in operations departments, there is more of the same work to be done by the employees, hence most of the tasks to be performed are standardized.ISO 9000 certification also indicates that the manufacturing procedures adopted by the organization are standardized. Initially due to the size of the operations, it was decided to seek individual certifications for each product line, instead of organization as a whole but by the year 2000, the whole organization was certified under ISO9001.Packages was the 6th organization in Pakistan to have ISO certification. To maintain the standardized quality, Packages, to the date has 57 Quality Improvement Teams (QIT) working in the various departments of the company on the Japanese Principle of Continuous improvement, called Kaizen. This edge of standardized procedures makes Packages leading Printing and Packaging Company of Pakistan.

SPECIALIZATIONEach employee in Packages has specified task to perform. For these tasks, people in each department are specialized and have to perform only the related activities. Forexample a Production Engineer has to supervise people like Shift in charges and lowerstaff supervisors and has to ensure efficient working of the machines. Similarly all employees in other departments have to manage their own work and allied activities. IT and Manufacturing departments of the organizations are epically equipped with highly specialized personnel, hence ensuring quality management and products. So it can be rightly said that the specialization in the organization is extensive

CENTRALIZATIONThe decision making in the organization is rested mostly with the manager of each department. For corporate decisions, top management is involved. But for day to day decisions, General Managers, Finance, Commercial executives, Technical mangers and supervisory staff take decisions as per requirement and urgency. Hence the concentration of power is at top and Middle management levels therefore a moderate level of Centralization is there.

DECENTRALIZATIONThe departments where work is in routine such as production and sales, decision making authority lies with management. Whereas in Research and development, human resource and development departments the power is delegated to employees and decision making authority is granted to employees.

SPAN OF CONTROLSpan of control also varies from department to department depending upon the departmental technology, since in production departments span of control is wide and HRD department span of control is very narrow.

COMMUNICATION AND COORDINATIONCommunication and coordination is also very high in Packages Limited within and among the departments. In R&D and HR&D departments communication is horizontal (and is normally in the form of face-to-face direct contact, telephone calls and meetings) because they perform a wide range of tasks. And it is vertical in production and sales departments as task variety is low here and is in form of formal memos and written reports.

HUMAN RESOURCE PLANNING PROCESSHuman Resource is perhaps the most essential resource for any organization. Regardless of the advancement in technology the need for human resource can never be denied. Even the most complex machineries need at least that one push to the button to make it work; and for that human resource is necessary. To not only keep the employees happy and motivated but also to keep them committed to their job, Packages Limited offers numerous different benefits to its employees. The Packages Limited has given many benefits to its employees. A number of facilities are provided by Packages Limited for the training and welfare of its employees. Few projects are also working in this context.

LEADINGLEADERSHIPThe leadership of any organization reflects the smooth performance, increased sales and overall success of the organization. If the leaders are compassionate about their job and responsibilities to achieve the goals and objectives of the organization to the best of their ability then their leadership is valued and appreciated.

LEADERSHIP STYLESThe styles of leadership in Packages limited can be observed from the various tiers of leadership each department practices. The hierarchy of authority can shed some light on the leadership styles practiced in numerous different departments.

HIERARCHY OF AUTHORITY

The hierarchy of the organization is somewhat tall but the Top Management is now trying to reduce the tiers in the vertical structure. At present, there are several levels in the hierarchy. Span of control in the organization varies from department to department. It ranges from narrow to moderate. Accountability is transparent, perpetual and both vertical and horizontal.

Hierarchy of Production Department

HIERARCHY OF REASEARCH AND DEVELOPMENT

CONTROLLING

TYPES OF CONTROLEach department of Packages Limited works under its own management and has its own finances and management to control. The company uses the System Application Procedure (SAP) system to organize, control and communicate within the department and outside each department. This system software enables all of the departments to coordinate with one another in a computerized system. All of the data about the production, the orders, inventory, customers, logistics and all the details are entered into the system. The managers and other personnel have their own system log in that gives them the access to the information in the system. Each person has their own level of clearance to the system depending upon the job requirement.

FEEDBACK CONTROLThere are two areas where Packages Limited adopts the feedback control in order to better the management of their organization. Customer Feedback Staff Feedback

Customer FeedbackPackages Limited inquires about their products and services from their clients in order to measure their satisfaction and to find out about any improvement required in their management and efficiency. Most of the customer base of Packages limited has been loyal for years and therefore quality is not something to compromise over. When each new contract is entered or each delivery is made any issues faced by the customers are informed to the subsequent department immediately to rectify the problem.

Staff FeedbackThrough the use of the System Application Procedure (SAP) system throughout packages the managers can easily communicate and coordinate with one another and the feedback of each department is recorded within the system. This way any changes that need to be made can be acted upon accordingly.

EMPLOYEE DISCIPLINE SYSTEMThere are numerous different ways to keep a check and control on the employees and their performances. Packages Limited ensures that employees are rightly motivated and work hard to achieve success.

Performance Appraisal- Rewards SystemAt packages it is the responsibility of HR&D department to develop a questionnaire and distribute among the employees at the beginning of each year. Employees are asked to set their individual and team performance goals or next year. At the end of the year, employees actual performance is evaluated and compared with the set objective. These are then analyzed to how much extent employees have been able to meet their self-maintained goals about their performance. Eventually according to this evaluation, employees are rewarded, either in the shape of bonuses or promotions.

FINANCIAL CONTROLFinancial control in any organization can be adopted by reviewing and analyzing the financial statements of the organization. The cost, profits, expenses and revenues can all be evaluated and kept under check with the help of financial statements and also allocating the budget.

BudgetsIn Packages, managers use budgets to plan for future and to reduce uncertainty about the availability of human and material resources to perform departmental tasks. The operating budgets are used to set the financial targets for a specific period for each department in Packages Limited. Managers also use budgets to allocate the resources to each departments to perform and attain objectives and operating goals of the organization.

DEPARTMENTS

In the company, there are various productions, service, support divisions and their respective sub-departments, which are as follows:Finance Department:Packages Limited has established its own Finance Department on professional basis. Packages Limited has different financial managers who are responsible for the financial aspects of the Packages Limited. This department plays a key role in organizations performance. Finance department is responsible to maintains accounts of all departments within the organization. For solving the complex and difficult problems

Marketing Department:Like all other departments the Marketing Department of Packages Limited shows a good performance. The marketing department plays a key role in the operations of the organization. The marketing manager is responsible for all the marketing operations in all three offices in Lahore, Karachi & Islamabad. The marketing department of Packages Limited is responsible for sale of industrial & consumer products. Packages Limited has divided into the three regions i.e., Lahore, Karachi & Islamabad. Each is assisted by the Area Marketing Manager who is second in line of authority under the Marketing Manager. Each region is responsible for the sale of its area. All area marketing managers are assisted by a team consisting of Regional Sales Manager, Senior Sales Officers, Sales officers and sales supervisor. There are two Regional Sales Managers under the area marketing manager. Then there are senior sales officers and sales officers. The Deputy General Manager who is among the Board of Directors of Packages Limited is often consulted by the Marketing Manager for important managerial decisions concerning Marketing Department. The Area Manager advice is especially taken while developing, launching and pricing of new products or amending the prices of existing products and so on.

Production Department:The role of production department in a manufacturing concern is very important. In Packages the production department is also an important one. The goods for the customers are manufactured according to the desired standards in this department. This departmentis responsible to planand organizethe allocation of jobs to various machines in a waythat their maximum capacity is utilized and that the delivery is given to the customer by stipulated date.The head of the production department is the production manager. The planning department also assists the department. The working procedures are based on week basis i.e. the total no of weeks in a year. The Production Managerlooks after the productionwhile the Planning Manager supervises the planning section.

Planning Department:We know that if we want to increase our efficiency, we should plan with excellence. Planning department is one of the most important departments in an organization. Its main functions are to plan huge operations. In Packages the planning department is also playing an important role. The Planning Manager controls the department. The two main functions of the Planning Department are following: Link between marketing dept. And production dept. Optimizing the available capacity

Research & Development Department:If the industry wants to grow not just survive, then it should take care of its Research and Development Department. World is changing day by day. Development in Packaging material is a continuous process. New materials, films, fibers, chemicals, adhesives and coating always are researched and developed. As Packages Limited wants to retain clients, stay out of court and improve profits, so it gives much consideration on quality of the product. To keep up with new demands, Packages Limited has a Research, Development and Control Department. This department works in close collaboration with Production and Marketing departments. This department has well equipped laboratories and pilot machines, which are used to test various chemical raw materials and machines. It enables Packages Limited to provide better quality and latest packaging to the consumer industry, enabling it to introduce new product lines an develop new materials. The Research, Development and Control Department has three major areas for its activities: Research Development Control

Quality control Department:This department examines the quality of products producing by Production Department. They make tests about the quality of printing, gram mage of paperor board and compare them with customer specifications and prepare reports about results.

Art Department:Packages limited have an art department in which qualified, efficient and talented artists and designers are working. The artists and designers in the department are very creative and for most of the time are involved in designing the new packages. Art department gives attention to the advice of the marketing and of the customer.

Human Resource Department:Human resource department is another one of the most important departments in an organization. The success of an organization is dependent upon a successful personnel department. All the progressive organizationgive a great attention and importance to their personal department. The prime objective of this department is to manage and utilize the human resources in a fruitful manner. It is obvious that if the employees are good then the pre-determined objectives can be easily achieved with efficiency and effectiveness. This department deals with the selection of employees and their working performance. The most important objective of any human resource department is how to improve the performance of employees at work.The function performed by human resource department is: Recruitment & Selection of Employees. Training and Development of Employees. Planning Work for the Employees. Performance Evaluation and Appraisals. Keeping Attendance Record Keeping Employees Record in the Organization.

Cutting and creating Department:Cutting is the process which gives the carton its shape. For each new product a cutting die is prepared from drawings. This department is equipped with latest cutting and creasing machines having a great efficiency along with accuracy.

Lamination Department:This department has two machines which laminates the paper on single side or double side. This lamination process is started after printing, as the customer requirements.

Dispatch Department:This department dispatches the goods produced by Production Department to the respective clients. The motivation of this departments workers is enhanced due to the incentive scheme.

Technical Department:This department is responsible for the repair and maintenance of machines and construction of building and roads in the factory. There are 130 employees in this department. It works in two shifts. In case of emergency third shift is carried out. It provides the necessaryspare parts and machinery to different departments. Technical Department is responsible for making tools and spare parts. Some time it works for other industries. It normally accepts the orders of Roll Grinders. These orders are accepted only on cash basis.

Camera Department:Camera Department is to color separation from the mechanical by using cameras. Earlier this whole process was done by manually but recently Packages Limited ha bought a sophisticated fully computerized color scanner. Then with the help ofscanners and manually, it is found out that how much quantity of each color is required in the design. The departmenthasincreased its efficiencyand quality of films. In the Camera Section, there are four colors use to get the negatives:Magenta, Yellow, Cyan, and Black. The number of negatives is subject to the number of colors used.

Corrugated Department:For large scale packaging, Packages Limited has been manufacturing Corrugated Carton since 1971. These cartons producedin different sizes, are used for transporting consumer products from manufacturer to retail outlets. The share of Corrugated DepartmentinPackages Limited total sales is almost 20%, which is secondafter the Off-set department. Corrugated cartons are of great value for the export of fresh fruits, garments and shoes a wide variety of gum tapes for sealing corrugated cartons are also manufactured

Industrial Relations Department:Already discuss before Medical Unit:Packages Dispensary, 23-Gulber-III, Lahore TRAINING AND DEVELOPMENT OF EMPLOYEES

How do we develop our strengths? Through learning. People develop the most when they are able to identify and cultivate their individual strengths and are provided with the right support and encouragement to do so. This philosophy lies at the core of our training and development programs.We have an institutionalized in-house training function, reflecting our commitment to building a workforce culture where all employees have access to personal and professional growth opportunities. Staff at all levels is encouraged to participate in these development programs. In-house training courses and workshops are regularly organized: some recent topics included Communication Skills, Time Management, Leadership, Language Improvement, Productivity Enhancement and Development Course for Supervisors.We send approximately 60 to 70 employees abroad annually for training purposes, while over 300 persons are trained locally every year.Adult education classes are held regularly for the workers' benefit.EXTENDING THE LEARNING CURVEPackages has entered into partnerships with both local and foreign training institutions.The Harvard Business School of Harvard University offers some world renowned training programs for senior managers, such as AMP (Advanced Management Program) and ISMP (International Senior Management Program). Participation in these programs is a complete management development experience, and Packages has provided nearly a dozen senior managers the opportunity of sharing their knowledge and expertise with senior business executives at these programs.Packages has also been sending its technical delegates to various industrial fairs and exhibitions, such as Paper World, DRUPA, IPEX etc. held regularly in different countries.LOCAL ASSOCIATIONPackages has entered into partnerships with both local and foreign training institutions.Packages makes full use of training facilities provided by reputed local institutions such as LUMS (Lahore University of Management Sciences), Pakistan Institute of Management (PIM), and Management Association of Pakistan (MAP). Recently, Packages entered into a learning partnership with LUMS and jointly developed a unique in-house training program called Diploma in Business Management (DBM). The program comprises 13 modules on traditional management such as HR, production, finance, and contemporary trends such as customer service, and lasts from 15 to 18 months. This program represents the first partnership of its kind in Pakistan between an educational institution and a business enterprise.These training opportunities also send an important message to all aspirants in the company - that personal growth is only possible through professional development.COMPENSATION AND BENEFITS POLICIES

Your job is an important part of your life, and to do it well, you need an appropriate environment for your mind as well as your body. We like to make sure that you do: our corporate culture emphasizes people, and the need to satisfy their potential.The attractiveness of any company's corporate environment can be gauged by the employees it hires and retains. An impressive 42% of our employees have been with us for more than 10 years, and almost 26% for more than 20. This is just one of the reasons why you would consider Packages as a prospective employer.Another is the technical excellence of our employees. 33% of our employees working as technical personnel have a bachelors or advanced degree. We take pride in the diversity of our staff, with chartered accountants, MBAs, engineers and even qualified lawyers on board.For us, the resources running Packages are not the machines, but the people. We do not seek employees. We seek people who will think, feel, express themselves, learn, teach, and grow with us. Their growth is the company's growth. That's how personal it is, for us. We have designed an impressive range of facilities and services to free our people from worries and allow them personal and professional freedom. These are just a few of the benefits we provide for employee welfare: Bonus -A cash bonus is paid annually to all employees. Conveyance Allowance -This is also paid to all employees. Employees are also offered the option of buying vehicles at reduced prices. House Rent Allowance -This is paid to all employees as a hefty percentage of their basic salaries. Employees' Old Age Benefit Scheme -The Company contributes a percentage of workers' wages towards this government scheme, which ensures a reasonable pension on retirement. Subsidized Food -The Company has extensive cafeteria facilities which serve breakfast, lunch and dinner to all employees at highly subsidized rates. Employees' Children Education -The Company pays an education cess to the government to ensure free education up to high school level of at least one child of each employee, subject to rules and regulations.

Problem Development/Area of Concern:The area of concern in Flexible Business Unit of Packages is related to Human resource department. This business unit is experiencing high attrition/turnover rate, and Packages is unable to retain its employees in particular the Trainee Engineers.As I have been an intern at Packages Limited, I observed that motivation amongst employees is low, I often found the employees overburdened, at times not interested in work and applying for other jobs. This built up my interest in human resource management of Packages and while deciding my research topic, I conducted various interviews with the HR Personnel of Packages Limited and from there I learnt about this problem. At that time (initial stages) the HR department was confused over this issue, even though they had taken notice of it but they were still not able to figure out the primary cause behind it. The major damage it was doing to the company was that it made the company like a training institute in which employees were getting trained and were leaving and joining the competitor firms right after their training period. This had become a tradition of Packages but now the HR department was taking notice of it as perhaps now they very well realize that loss of human capital can harm the company in the long-run, even though in the short-run everything looks bright.Although the fact that trainee engineers' leaving frequently was not highlighted by the company itself, but I got lucky to observe the department's working for a few hours and get a better know how about the working condition of the department. While interviewing the Flexible Unit employees I discovered that it's not the labor class which is into leave the company that frequently but the Engineers who are leaving rapidly.On knowing this fact, I conducted several interviews with the present trainee engineers and held telephonic conversation with trainees who left the company in the past one year and gathered useful information to form the basis of my research which will be discussed later in the study.

Objectives of the Study:To help the company in addressing the issue of high turnover rate amongst engineers in Flexible Business UnitTo identify the primary reasons behind high attrition rate of Engineers in Flexible Business Unit at Packages limitedTo assess if monetary benefits will play any role in decreasing the attrition rateTo assess if fringe benefits will play any role in decreasing the attrition rateTo find out what are the engineers' expectations from the job and what they are actually experiencingManagerial and Academic value of research:The managerial value of this research can be that first of all it can be used by Packages Limited to address the turnover problem in Flexible Business Unit and avoid spreading this problem to other business units. Various issues of the trainees will be addressed in this research so the company can take instant corrective measures. This research can also be used by managers in other companies who are experiencing similar problem of high attrition rate.On an academic basis this research can be used by students who plan to investigate attrition issue in any company and can be a credible source and reference for further study in research. Secondly with time and further research in study, we might bring in new innovative schemes that can resolve turnover problem in companies. Moreover this research will be based on various other worldwide researches carried out on employee turnover problem, so it will also sum up those researches.

Literature Review:The issue of employee turnover all over the world has been widely discussed in the empirical literature. Researchers have reported various reasons for why employees leave an organization. This section summarizes some of the research studies that have been done on employee turnover and is arranged in an ascending order according to the year it was done in.Employee turnover is a much studied research topic. There is a vast amount of literature available on the causes of employee turnover dating back to the industrial revolution. Researchers have developed multivariate models to study various factors contributing to it and have empirically tested them to find out the major reasons behind it. Price (1977) in his research defined turnover as the cessation of membership in an organization by an individual and their movement out of an organization.Allen & Meyer (1990) investigated the nature of the link between turnover and the three components of attitudinal commitment: affective commitment refers to employees' emotional attachment to, identification with and involvement in the organization; continuance commitment refers to commitment base on costs that employees associate with leaving the organization; and normative commitment refers to employees' feelings of obligation to remain with the organization. Put simply, employees with strong affective commitment stay with an organization because they want, those with strong continuance commitment stay because they need to, and those with strong normative commitment stay because they feel they ought to. Allen and Meyer's study indicated that all three components of commitment were a negative indicator of turnover. In general, most research has found affective commitment to be the most decisive variable linked to turnover.Griffeth (2000) re-examined various personal characteristics that may be linked to turnover. They concluded that there were no differences between the quit rates of men and women. They also cited evidence that gender moderates the age-turnover relationship (i.e. women are more likely to remain in their job the older they get, than do men). They also found no link between intelligence and turnover, and none between race and turnover. Hence there is little evidence of a person's gender being linked to turnover. Griffeth also noted that noted pay and pay-related variables have a modest effect on turnover. Their analysis also included studies that examined the relationship between pay, a person's performance and turnover. They concluded that when high performers are insufficiently rewarded, they leave.Tang T. L. P., Kim J. W. & Tang D. S. H (2000), examined the relationship between attitudes towards money, intrinsic job satisfaction and voluntary turnover. One of the main findings of this study is that voluntary turnover is high among employees who value money (high money ethic endorsement), regardless of their intrinsic job satisfaction. However, those who do not value money highly but who have also have low intrinsic job satisfaction tended to have the lowest actual turnover. Furthermore, employees with high intrinsic job satisfaction and who put a low value on money also had significantly higher turnover than this second group. The researchers also found that placing a high value of money predicted actual turnover but that withdrawal cognitions (i.e. thinking about leaving) did not.Elangovan (2001) examined that the notion of job satisfaction and organizational commitment being causally related has not been incorporated in most turnover models. His study indicated there were strong causal links between stress and satisfaction (higher stress leads to lower satisfaction) and between satisfaction and commitment (lower satisfaction leads to lower commitment). He further noted a reciprocal relationship between commitment and turnover intentions (lower commitment leads to greater intentions to quit, which in turn further lowers commitment). In summary, only commitment directly affected turnover intentions.Abdul Rahman, S. M. M. Raza Naqvi and M. Ismail Ramay (2008) studied the issue of turnover in IT firms of Pakistan in detail because they have seen a high turnover during the past few years. The study revolves around three variables including job satisfaction, organizational commitment and perceived alternative opportunities. The study revealed that both job satisfaction and organizational commitment had negative effect on turnover, whereas perceived alternative job opportunities had a positive correlation with intention of turnover. The study suggested that managers need to increase job satisfaction to increase loyalty of the employees with the firm.Martin C. (2003) in his paper "'Explaining labor turnover: Empirical evidence from UK establishments", detected a complex relationship between turnover and training. He suggested that establishments that enhance the skills of existing workers have lower turnover rates. However, turnover is higher when workers are trained to be multi-skilled, which may imply that this type of training enhances the prospects of workers to find work elsewhere. The literature on the link between lower turnover and training has found that off-the-job training is associated with higher turnover presumably because this type of training imparts more general skills.

Research Question:"Identifying the reasons behind high attrition rate amongst the employees of Flexible Business Unit at Packages Limited"Explanation:Once it was clearly indicated that this department is experiencing a high turnover rate, I formed my research question as identifying the reasons behind this high attrition rate. The literature review helped me indicating various causes that may be related to this high attrition rate. I took into account various articles that were indicating somewhat the same issues that I observed from the initial interviews, for instance controllable and uncontrollable factors investigated by Naresh Khatri (1999), pay satisfaction, career opportunities, expectation-reality match studied by Meenakshi Gupta(2000), intrinsic job satisfaction and attitude towards money examined by Tang (2000), organizational commitment and perceived alternative opportunities studied by Abdul Rehman and M.Ismail Ramay (2008). From these I picked out the hottest issues prevailing at Packages Flexible Business Unit. The research previously done on this HR issue highlighted various determinants of this problem in various cases, and so that I don't miss out on the major ones, I made a list of the sub questions that will be a guideline for the whole research. The issues like monetary benefits, non-monetary benefits, working environment, job satisfaction are addressed in these sub-questions and they will be a part of the focus group as well as the questionnaire to get a better feedback on all of these.

Sub Questions:Are there any internal factors related to this high attrition level?Is the attrition prevailing because of low monetary benefits?Is the turnover increasing because of the work environment of this department?Will fringe benefits play any role to reduce the level of turnover?What are the employee's expectations with the job in this department and how they can be fulfilled so the turnover can be reduced?

Research Methodology:To get the answers for my research questions, this is how I went about the research:Firstly, I collected data from the internet regarding the employee turnover issues all around the world, this helped me forming the background of the research and I came to know about various reasons why employees leave an organization. I read various articles and researches done by various authors to get an idea about the reasons that have been identified till now by the researches on this very important issue. Secondary data was collected from various websites including Jstore and various other online research resources that will appear in the references at the end.The literature review helped me in gathering all such causes but at the same time I never remained stuck to them, I was always aware of the fact that there can be more to it, perhaps there might be some issues which were never previously addressed that can emerge in my research.Then I had an in-depth interview with the HR Assistant Manager Miss Fatima Mehmood to identify what she feels about this problem. From there I collected some factual information and got an idea about issues prevailing in the department. Even though she was not so sure about the reasons behind the turnover issue but was concerned over this issue.Then I carried out a focus group with 3 trainees and 3 engineers to get an open idea about their problems and got a better know-how about why their colleagues left the organization. I also conducted telephonic interviews with some of the engineers who recently left the department. Sample Size: From these unstructured interviews, I made a structured questionnaire entailing various questions about the work related issues, monetary benefits, motivation, job satisfaction etc. I floated the questionnaire to all the trainees, engineers and the managers of the Flexible business unit and got it filled by 30 respondents in total.From the filled questionnaire I tabulated the data and analyzed the research results and came up with various interesting findings which will be of great interest to the company in general and the HR department in particular.

Findings of the in-depth Interview:

Policy of not firing employeesFrequent job shifts from one department to anotherHigh turnover amongst traineesHighest attrition in Flexible business unitTrainee Engineers leaving frequently (2 out every 5 joining in leave the firm)Basic pay of Rs.25000Authoritative jobsFamily like working environmentHealth and safety at work consideredSource: (Interview with Fatima Mehmood, Assistant HR Manager)Findings of the Focus Group

Intention to stayCare for Employees rightsExposure of other departmentsFringe BenefitsHealth and Safety at work

Intention to leave:Overload of workLate sittingsNo time managementNo technical work for engineersNo application of the studied degreeLow salaryCalls from office even after going homeStuck in packaging field(Source: Focus Group with 6 Engineers of Flexible Business Unit at Packages Limited)

Independent Variables:Pay SatisfactionWork LoadFringe benefitsOutside Career OpportunityJob satisfaction

Dependent Variable:Intention to leaveDATA TABULATION AND ANALYSISAnalysis:The results to this question reveal that a very high percentage of the employees in the survey are working at Packages for less than 1 year i.e. 53%, as most of them were trainee engineers. This in itself is an alarming situation that a smaller percentage 47% fall under the category of more than one year, which indicates that the level of loyalty amongst the employees might be low or Packages is into injecting more fresh blood in the company. None of the workers fall under the category of 7 or more than 7 years working, which means that Packages might be missing out on experienced individuals.Analysis:This question was particularly investigates if all the employees of flexible department were there from the start or has there been rotation amongst them. It revealed that Flexible business unit has more freshies in it as 67 percent of respondents fell under the category of less than 1 year, which means a few of them are recently shifted to the flex department, hence more trainees in this department. Again none of respondent fell in the category of 7 or more than 7 years working, and a very small 30 percent above 1 year.Analysis:This question produced a mixed response, but the weight fell towards the positive side. It indicated that respondents are satisfied working at Packages limited. Although 26 percent fell in the negative category but majority were satisfied working at Packages Limited, which can be taken as a positive sign for the company as a whole.Analysis:The result to this question further clarified the issue, a heavy majority responded that they are not satisfied working at Flexible Business Unit, now this can be a cause of concern, where at one point majority indicated that they are satisfied working at packages limited, on the other hand the majority was dissatisfied working at flexible business unit of the same company, which indicates that something is certainly wrong with the department's working.Analysis:When asked about the monetary benefits importance, that 87% considered it either very important or important and only 13% considered it somewhat important but none of the respondent went for not important or not at all important. This can be very beneficial for the HR department as they can motivate the employees with monetary benefits which are considered important by them.Analysis:When questioned on non-monetary benefits, it produced a mixed result. But again the majority 58% fell under the band from very important to somewhat important, whereas 42% didn't consider it important. This indicates that while choosing between monetary benefits and fringe benefits, the company should give more weight to monetary benefits.Analysis:After getting a clasp of the weights attached with monetary and fringe benefits, the respondents were questioned ons the level of satisfaction with the monetary benefits of their current job which produced interesting results. Although majority of the respondents attached a high weight to monetary benefits but the level of satisfaction with the monetary benefits of Flexible business unit is low, as 60% were either dissatisfied or very dissatisfied with the monetary benefits. This is a major cause of concern when respondents attach a high weightage with monetary benefits.Analysis:When questioned about the fringe benefits of Flexible business unit, the percentage of dissatisfaction was lower than that of monetary benefits, but still the weight age fell towards dissatisfaction. 60% were not satisfied or not at all satisfied with the non-monetary benefits. But this might not be a major problem as importance attached to fringe benefits by the respondents is low.Analysis:When asked about the workload at Flexible unit of Packages 87% of the respondents considered it as a heavy workload. This can also be referred to the focus group findings where the respondents complained about late sittings and remaining in touch with office work even after office time. This issue certainly needs attention of the HR department as well as the management of flex department.Analysis:This question was asked to judge upon the job satisfaction associated with the respondents current job at flexible business unit, the results showed that 75% of the respondents disagree or strongly disagree with the statement which means the job is not up to their expectation and they are also not satisfied with their current job. Throughout the business education, we study the importance of job satisfaction, if it's low then the motivation will also be low and employees are likely to leave, so the issue of job satisfaction should be addressed immediately.Analysis:This question was asked to measure the 'Intention to leave' of the employee which showed positive results, majority of the respondents have an intention to leave as 86% of respondents agree to the statement that they think about quitting their job and only 14% disagree to the statement, which is a dangerous sign for the department and the company as a whole.Analysis:When asked about opportunity of finding a better job, the response was mixed, 40% considered it likely to find a job and 60% considered it not likely, which means a heavy percentage fell towards the 'Not Likely' category. This can be attributed to two factors, either to the economic conditions of Pakistan and referring to the focus group where respondents said 'Stuck in packaging field' whereas Packages is the largest packaging company in Pakistan, so they might not be able to find a better job than the current job.Analysis: 100% of the respondents were males. And 93% fall in the age bracket of 21-30, which means a very high percentage is youth, who have an urge to earn more and more, hence if not loyal and satisfied with their job, they are likely to leave. Hence corrective actions are instantly required.OVERALL ANALYSIS AND FINDINGSIn this section I will be taking into account all the findings of the research and will be analyzing how they intermingle. Starting off with the final in-depth interview with Miss Fatima Mehmood where she highlighted the facts like Rs.25000 basic salary, taking into account the inflation rate prevailing in Pakistan, the salary in itself is not sufficient enough for a graduate to meet the basic needs and for this very reason this issue was highlighted not only in the focus group but also in the tabulation of the questionnaire where more than 70% respondents were not satisfied with the monetary benefits.It was also indicated by the study that health and safety at work is not an issue behind the high turnover rate, as Miss Fatima said that family like environment exists at Packages, but she didn't highlight that there are late sittings in this environment because of which employees are really feduped and on reaching home they tend to receive calls from office which can be really annoying and even at late night they have to keep a check on the production, therefore they won't be living a very peaceful family life and the balance between work and family life will surely be disturbed. This could be a major reason why 2 out of every 5 trainees leave the firm within 1 year, because they might not see a bright peaceful future with the firm in particular this department.It was also highlighted that the company doesn't have a policy of firing employees until and unless there is a serious issue, that was also indicated in the questionnaire, as there was difference between the percentages of respondents working at Packages and working in flexible business unit, hence there may be frequent shifts which may be harmful for the company in the long-run as they might not get the team work out of the departments.Another issue that was addressed in the focus group was that there was not much of a technical work for engineers and the application of the studied degree is also less, hence there was also a gap between expectation and reality of the job, which needs to be filled to decrease the intention to leave of the employees.The research produced another interesting finding where mostly employees felt satisfied working at Packages limited in general but when asked about Flexible business unit in particular the response turned out to be negative and a heavy majority said that they are dissatisfied working in this department, so the label of Packages does matter.Although as much as 60% are dissatisfied with the fringe benefits, but the importance attached to the fringe benefits is less compared to that of monetary benefits so the company should also give more weight to monetary benefits as 42% respondents didn't consider it important.A majority of the respondents i.e. 60% took a negative view regarding an outsid