arzoo textile

8/7/2019 Arzoo Textile

http://slidepdf.com/reader/full/arzoo-textile 1/29

1



SUBMITTED TO: SUBMITTED

BY:

MA’M TASNEEM AKHTAR AMBER GILL20

ERUMKHAN 07

SANA

QAYYUM 48NIGHA

T SHABIR 35SANA

RIAZ 16SONIA

ARIF 52ADNA

N YOUNAS 22

2



DEPARTMENT OF BUSINESS MANAGEMENT

SCIENCES

UNIVERSITY OF AGRICULTUREFAISALABAD

DEDICATION

3



This Project is dedicated to our Teacher and

parents. Without their knowledge, wisdom, and guidance, we would not have the goals we have to

strive and be the best to reach our dreams!

4

The assistant of HR manger Ms. RASHIDA AFZAL helped us

to complete this research report. We would like to express

our gratitude for her support and assistance.

The HR assistant Ms. RASHIDA AFZAL has provided a

tremendous knowledge: she taught us how to think about

the problems; she had provided us the opportunities and

support.

A lot of thanks to Mam TASNEEM AKHTAR for providing usgreat help and knowledge so that we could fulfilled this

task and finally lot of thanks to those individuals who

(directly or indirectly) helped us throughout this project.



EXECUTIVE SUMMARY

Arzoo Textile Mill has grown from a cotton export house into thepremier business Today, Arzoo is considered to be at par withmultinationals for quality products and management skills.

We recently have done research in Arzoo Textile Mill, in which wegot the information of HR practices

The difference between the success & failure is doing things rightand doing things nearly right, & Arzoo textile mill has always triedfor success & that is why it is known to be one of the knownorganizations in Pakistan. Irrespective of all these positive pointsof Arzoo Textile Mill, we have noticed a few areas where theimprovement can really increase the efficiency of Arzoo TextileMill.

In this report we have given a very brief review of what we haveseen during our visit to the mill. We also mentioned about the

Textile industry in Pakistan and discuss in detail each and everyaspect regarding HR strategic.

Then we have discussed about our learning that we gatheredfrom the mill. We have made it possible to write each and everything that we have learnt there. We have all practical efforts inthe form of this manuscript that’s the asset for my future career.

5



LIST OF CONTENTS

1. MISSION 07

2. VISION, CORE VALUES 08

3. INTRODUCTION OF ORGANIZATION 08

4. HISTORY OF ORGANIZATION 11

5. STARATEGIES 13

6. INTRODUCTION TO HR DEPARTMENT 15

7. FUNCTION AND RELATIONS 16

8. ROLE OF HUMAN RESOURCE 17

9. HR AS PLANNING PARTNER 18

10.HR DEMAND 18

11.HR FORCASTING 19

12.HR SUPPLY 19

13.HRMS, HRIS 19

14.PREDICTIONS FOR FUTURE 20

15.SUCCESSION PLANNING 21

6



16.RECRUITMENT PROCESS 23

17.OUTCOMES OF STUDY 25

18.CONCLUSION 26

19.SUGGESSTION 27

ARZOO MISSION STATEMENT

Although Arzoo is providing Quality Products with satisfied customersworldwide, there is a desire to achieve perfection and excellence. This couldbe reflected in decrease of customer complaints and an expanding marketon the global level. The strong commitment and desire for fulfillment is

structured into operations and Quality System in a manner that ascertainsachievement OSF stated objectives in a positive manner. These objectivesare achievable through the following actions:

• System & Process Reliability

• Employees Involvement

• Fair Dealings

• Community Welfare

7



• CHAIR COVER

• FABRIC

• GARMENTS

MAJOR COMPITETORS

Competitors of Arzoo Textile Mill are following:

•

Crescent • Chenab

• Alkarms

• Sitara

• Kohinoor

• Amtex

EXPORT MARKET

Arzoo has a substantial share in the export market mostly in the followingareas of the world:

• North, central and South America• Australia• New Zealand• Europe• S. Africa• Far East• Middle East• Scandinavian Countries

INDUSTRY INFORMATION

Factory Size: 5,000-10,000 square meters

QA/QC: In House

No. of R&D Staff : 5 - 10 People

9



No. of QC Staff : 41 - 50 People

Management Certification: ISO 9000/9001/9004/19011: 2000 ISO14000/14001

Company Website: www.arzootex.com

HISTORY OF ARZOO TEXTILE MILL

The ARZOO Management Board consists of 6 family members of Late HajjiAbdul Majeed Sheikh who dominated as a leading businessman from 1930 to1971 in this region. He started his carrier from Calcutta (India) in 1930 &managed to expand his export &

import business throughout the World and established offices/ branches inNew York (USA), London (U.K), and Milan (Italy). He extensively traveled allover the world during the period 1930 to 1970 and dominated in commercialbusiness.

Mr. Azhar Majeed Sheikh, now the eldest member of the family, had adream of an ideal industry to be setup not for the profit only but also tocreate job opportunities, contribute to the country's economy and to developthe sense of welfare for general public. This dream began to execute on thecrutches of Mr. Azhar Majeed Sheikh with the intention of pious contributiontowards the country and the community committed to sound determination. To make the project viable and successful we made restless efforts. Andtoday Arzoo is one of the leaders in Printed Fabric and Home Textiles.

Mr. Azhar Majeed Sheikh, the Chairman & Head of the family, has formedcompany under the name & style Arzoo International (Pvt.) Limited in 1983

with the objective to enter into Textile business with manufacturing backupof cloth weaving machines. In 1992, Mr. Azhar thought of manufacturing &marketing value added items such as bed linen made-up and garments soArzoo Textile Mills Limited came into existence of the Arzoo who are now oneof the few exporters having a turn over of more the US$ 70 million.

10

http://www.arzootex.com/

http://www.arzootex.com/



Arzoo is striving hard to maintain a position in the international home textilemarket. Over the years, the Arzoo has responded to the varied demands of the export market. Today, the uncompromisingly high standards in style,fashion and quality control, use of modern production and packagingtechnology are proof of this determination to compete in the world marketshare of different segments in the growing sales of the company is given in

the table below:

HIERARCHY OF ORGANIZATION

11



STRATEGIC PATH SO FAR

At the starting stage Arzoo textile only focused on market penetration sothat more and more people know about Arzoo textile but with the passage of time it choose different types of strategies to keep itself alive and cope-upwith dynamic environment and the competitors.

The strategic path followed by Arzoo textile so far is as follows:

INTEGRATION STRATEGIES

From this type of strategy Arzoo adopted two ways:

12



• Forward integration

It means Arzoo textile gets control over its distributors because it hasits own fair price shop.

• Backward integration

Arzoo textile also adopted the strategy of backward integration. Whichmeans Arzoo gets the control over its suppliers because of thefollowing reasons.

i. Maintain quality

ii. Delivery time

iii. Price fluctuation

iv. Independency

INTENSIVE STRATEGIES:

Arzoo textile adopted product and market development strategies because itexports the products to different countries according to the demands of customers.

DIVERSIFICATION STRATEGIES

From diversification strategies Arzoo textile only focuses on relateddiversification because it also manufactures/produces kitchen products liketea cozies etc.

EVALUATION OF VISION & STRATEGIES

13



The vision of Arzoo textile describes that it want to work in modern anddynamic environment and at the same time fulfill the demands of customersin an efficient way that create value for Arzoo. According to this point of view, the strategies adopted by Arzoo are matched with the vision of Arzoo.

•

Arzoo is working in the right direction for the achievement of objectives/goals which are set.

• There is perfect alignment between the vision and the Strategiesadopted by the Arzoo.

14



INTRODUCTION TO HR DEPARTMENT

The department of Human resource in Arzoo textile mill was established in2003 which take control over the working and managing of employees.HRdepartment of Arzoo performed many functions which include:

• The motivation of employees.

• Recruitment and selection of potential workers.

• Trainings and development courses within the organization.

•

The department also help the textile mill in providing the benefits andallowances to employees.

HIERARCHY OF HR DEPARTMENT

CHIEF EXECUTIVE OFFICER

GERNAL MANAGER

15



DEPUTY GERNAL MANAGER

MANAGER

ASST. MANAGER

HUMAN RESOURCE OFFICER

SUPERVISORS

FUNCTIONS & ITS RELATION TO WHOLE STRATEGICSETUP

With the HRM point of view, the company performs the four functions:

• Staffing

• Training & development

16



• Motivation

• Maintenance

1.Staffing

Staffing is the first function which the Arzoo textile performs. Instaffing Arzoo searches the competent employees.Staffing has further 3 sub functions:

• HR PlanningA process by which the Arzoo’s managers insures that they have rightnumber of people in the right place at the right time.

• Recruitment In this step Arzoo identifying the capable applicants.

• SelectionIn this step Arzoo select the best one applicant.

• Training & development

Arzoo textile only focuses on:

• Orientation

• Training issue

• Development issueBut not on career development because extra resources are utilized on

career development.

• Motivation & maintenance

Arzoo textiles evaluate the performance of the employees and then motivatethe employees for the achievement of motivation of goals.

RELATION TO WHOLE STRATEGIC SETUP

17



HR department align the HR functions with the strategies by seeking theassistance from chairman & managers of different departments.

ROLE OF HUMAN RESOURCE

The following are the key roles of HR.

• Supporting management by developing center policies.

• Evaluating staff through retraining.

• Providing guidance to committee, investigating complaints relatedto employees.

• Assisting management in establishing avenues of assistance at all

duty stations.

DEVELOPMENTS

The role of HR manager must parallel the needs of his or her changingorganization.Successful organizations are becoming more adaptable, resilient, quick tochange direction & customer centered.So these are the important elements which the Arzoo textile covers &provide the satisfactory products to the customers & made its position in the

market.

FUTURE PLANS

The future plans of HR of Arzoo textile includes the following roles which itwant to become in the future.

• Business & strategic partner

Although HR us the part of strategy making but it want to take keen interestin strategy making & gets all the information that will help in the strategymaking.

• Employee advocate

The HR manager wishes to provide employee empowerment, employeedevelopment opportunities, employee assistance programs, gain sharing& profit sharing strategies, organizational development, interventions &regularly scheduled communication opportunities.

18



• Change champion

The HR manager wants to become change champion which means theconstant evaluation of effectiveness of the organizational results in the needof the HR professional to frequently champion change.

Both knowledge & ability to execute successful change strategies make theHR professionals exceptionally valued.

Knowing how to link change to the strategic needs of the organization willminimize employee dissatisfaction and resistance to change.

HR AS PLANNING PARTNER

In Arzoo textile mill hr works as partner in planning process and inimplementation of strategy. The whole organization depends on labor and hris only department that control and manage the labor. Hr also help theothers departments. In making the policies and in maintaining the database.Arzoo hr department keeps the records of whole organizations andemployees so it’s easy for organization to control each department andmake planning. When strategies are made hr managers will review thestrategy and plans hr can also modify the strategy process. Hr manager canalso analyze the report presented by financial, marketing and operationalmanagers. Its not only helps the organization in hiring the best employees

but also helps the organization in solving major problems like employeesdispute.

HR Demand The process is the calculation of organization’s requirement or demand forhuman resource.Starting of winter season is peak season of Arzoo textile mill to recruit theemployees so the demand of hr is very high at that time. In Arzoo textile milltwo types of employees are working;

• Permanent

• Contractual

The number of permanent employees are 6200 and number of contractualemployees are 14215 while 6000 are wage employees. But in Arzoo textilethe demand for contractual employees are more then permanent employeesbecause of following reasons;

• Cost saving

• Less benefit /rewards are given to contractual employees

• More ideas are generated as the fresh blood enters the organization

19



• No stock pilingHR Supply

Arzoo is fulfilling both internal as well as external supply, in peaks season i.e.start of winter season ,supply of employees are more required. Arzoo textile

preferred to hire the employees internally but in time of need they also hireemployees externally.

HR Forecasting

HR forecasting means to forecast the demand and supply of human resourcenow and in future.In Arzoo textile mill there is no proper system available for forecasting butHR department give the authority to all department of organization toforecast their demand according to their requirements. After forecasting alldepartment inform the HR department that how many employees are

needed, then all the department provide the strength list to HR department.Forecasting take place on current basis due to dynamic environment whichmeans long term forecasting is not their main focus.

HRMS, HRIS

Human Resource Information System (HRIS) is a software or online solutionfor the data entry, data tracking, and data information needs of the HumanResources, payroll, management, and accounting functions within abusiness.

Arzoo textile implemented the information system in 2003 in theorganization, now they have complete data base system in the organization. The Human Resource Information Systems (HRIS) helps the Arzoo in:

• Management of all employee information.

• Reporting and analysis of employee information.

• Company-related documents.

• Benefits administration including enrollment, status changes, andpersonal information updating.

• Complete integration with payroll and other company financial

software and accounting systems.• Applicant and resume management.

• Attendance of employees

• Pay raises and history,

• Pay grades and positions held,

• Performance development plans,

• Training received,

20



• Disciplinary action received,

• Personal employee information, and occasionally,

• Management and key employee succession plans,

• High potential employee identification, and

• Applicant tracking, interviewing, and selection.

The effective HRIS of Arzoo textile provides information on just aboutanything the company needs to track and analyze about employees, formeremployees, and applicants.

Before the implementation of this system in Arzoo textile mill, the recordkeeping, salary making, etc was the duty of senior personal manager.

Historical Data Related to Demand & Supply

Arzoo textile seldom forecast the changes in workforce. HR department mustlook at those factors that can either increase or decrease its employee base.But sometimes they try to estimate the retirements, voluntary quits, andsome advance notice of one’s retirement intent. So that, they can fulfill theirdemand of workers especially in those days when load of work is high in mill,like in the start of winter season. For normal demand, they fulfill therequirements by internal workers but in peak days, they hire workers outsidethe organization to meet the seasonal needs of mill on contract bases.

Turnover Rate

Arzoo textile industry is facing high turnover rate, and this trend is high inalmost every industry due to;

• Economic recession• High inflation• Sometimes organizations want to cut their cost by reducing employees• Less loyalty in employees

Due to high turnover Rate Company faces many problems like;

• Loss of money• Wastage of time• Hurdles in the operations of tasks• Uncertainty

Prediction for Future Shape of HR, HC:

21



Human capital refers to the stock of competences, knowledge andpersonality attributes embodied in the ability to perform labor so as toproduce economic value. It is the attributes gained by a worker througheducation and experience.

Arzoo textile is enriched with HC; it has skilled, experienced, knowledgeableworkers and always tries to manage them.Human Capital Management helps the Arzoo textile to analyze workforcestrengths and vulnerabilities, while surfacing opportunities and strategiesthat allow business to proactively manage human capital. By having aholistic view of the work force, the mill finds the solutions of their problemsand accurate answers needed for strategic decision making. The companyalso makes estimation that how much Human Capital is available in thecompany and how much is required in future needs. This knowledge helpsthe company while they make strategies and decisions.

Efficient and effective management of "Human Capital" has progressed to anincreasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personalhistories, skills, capabilities, accomplishments and salary. To reduce themanual workload of these administrative activities, organizations began toelectronically automate many of these processes by introducing specializedHuman Resource Management Systems. HR department of Arzoo textile relyon internal IT professionals to develop and maintain an integrated HRMS.

Benefits

•

Measure and improve workforce productivity.• Minimize risk by changing likely outcomes.• Proactively plan for future workforce needs.

Succession Planning

Succession planning module facilitates efficient career planning andstreamlines the decision-making process. This is achieved by blendingindividual aspirations with the organization’s view of those individuals,

thereby minimizing the potential of making incorrect assumptions aboutcareer moves. This module leads a firm through every step of career andsuccession planning and tracks information about candidates' levels of potential, performance over time as well as retention risk.Arzoo textile is involved very little in succession planning; mill does it onlyfor higher posts. Normally they do not do this. The method throughwhich they fill the vacant seats is that; if a person leaves the job withoutany notice or with notice. They normally sort his duties to some other

22

http://en.wikipedia.org/wiki/Labour_(economics)

http://en.wikipedia.org/wiki/Economic_value

http://en.wikipedia.org/wiki/Human_Capital

http://en.wikipedia.org/wiki/Labour_(economics)

http://en.wikipedia.org/wiki/Economic_value

http://en.wikipedia.org/wiki/Human_Capital



person for 6 to 10 days, in this period they hire a person externally for thatvacant job.

Organizational considerations for job design

•

Effectiveness

In the context of job design, to remain effective, organization mayhave to redefine jobs, monitoring, and using technology so that thefirm can even compete against giant rivals.

• Efficiency

Maximum outputs through minimum inputs of time, effort and otherresources. In the context of job design, efficiency in time, effort, laborcosts, and training should be done accordingly.

• Job analysis

Job analysis is the procedure for determining the duties and skillrequirement of a job and the kind of person who should be hired for it. The supervisor or HR specialist of Arzoo textile normally collects one of the following types of information:

• Work activities:

First they collect information about the job actual work activities suchas marketing, production, etc. This list also include how, why and whenthe worker performance each activity.

• Education and qualification:

Collects the information about education background and qualification

• Experience:

On experience, Arzoo textile gives emphasis for any job. But it is notcompulsory for entering level jobs.

23



Recruitment process in Arzoo textile Mill:

Recruitment is the process through which the organization seeks applicantsfor potential employment.

Source of recruitment:

There are two kinds of source Arzoo uses for recruitment .They are

1. External source

2. Internal source.

1. Internal source:

Arzoo thinks that current employees are a major source of recruits for all butentry-level positions. Whether for promotions or for ‘Lateral’ job transfers,internal candidates already know the informal organization and havedetailed information about its formal policies and procedures. Promotionsand transfer are typically decided with little involvement by HR department.

• HR department become involved when internal job openings arepublicized to employees. HR department of Arzoo textile helps the

organization to find appropriate person for vacant seat.

2. External source:

When job opening cannot be filled internally, the HR department of Arzootextile must look outside the organization for applicants. The external sourceof recruitment at bellow:

2.1 Unsolicited Applicants :

Unsolicited applicants means those people who reach the HR department of

Arzoo in search of a job whether by letters, e-mail, telephone or in person.People drop their CVs and applications in Arzoo. Usable applications and CVsare kept in an active file until a suitable opening occurs.

2.2 Employee referrals:

24



Employees may refer job seekers to the HR department of Arzoo .Employeereferrals have several advantages .Employees with hard –to –find job skillmay no others who do the same work. Employee’s referrals are excellentand legal recruitment technique.

2.3 Advertising:

Arzoo textile also uses print media for advertisements of jobs. Want adsdescribe the job and the benefits, identify the employer, and tell those whoare interested how to apply .They are most familiar form of employmentadvertising .For highly specialist requites, ads may be placed in Jhang andDawn newspaper.

Selection process in Arzoo

Arzoo employs a strategic recruitment and selection process to ensure that

they have the right people in the right jobs, to help them achieve theirmission and their strategic direction. Their selection process is summarizedbelow.

Testing:

For certain positions like for IT posts, short listed candidates are scheduledfor testing

Interviews:

Candidates, who have successfully completed testing, if required, are invitedto attend an interview before the panel (G.M, 4 to 5 directors, experts andHR manager). Interviews are predominantly behavioral-based, meaning thatcandidates are asked to draw on their specific experiences in responding toquestions pertaining to the job.

References:

During the selection process, candidates are asked to provide employmentreferences. References will be checked for those candidates who are stillbeing considered at this stage of the selection process.

25



OUTCOMES OF STUDY

The Visit to Arzoo textile mill helped us to look at the new side of working of HR department. We came to that there is lot of difference between the

procedures we studied theoretically and the procedures followed practicallyby the Mill workers.

It enhanced our knowledge about the working methodology of manufacturing organization. The team work and the discipline we observetheir revealed that the HR department of any organization play a veryimportant role to manage the human efficiency and motivation level

We further observed that all the stages of production i.e. from supply of rawmaterial to the formation of finished goods are handled by the Arzoo textilemill on its own which help them to maintain the quality of their product at all

stages.

ROLE OF HR AND HR DEPARTMENT TO SUCCESS ANDFAILURE OF ORGANIZATION

• HR plays a vital role in the working of whole organization without theiractive participation the other department cannot achieve their goals asit support the other department e.g.

• Provide training to workers according to their needs

•

Responsible for the appropriate supply of the workers

• It helps to manage and control the cost of the organization for exampleif Finance department wants to reduce their cost it help out byproviding low cost labor

• Help the other department as well.

26



• All these points’ leads to success of organization and as result theorganization furnish more and more

CONCLUSION

Arzoo textile mill is one of the leading manufacturing mills in Pakistan. Thesystem, the management style, the policies & decision making environment

is really remarkable. This report is basically an attempt to identify the areaswhich need to be improved.

In this era of technology, the “Information” is the key to success in thebusiness. This means that the successful businessman will be one who willhave the right information at the right time. This comment leads to theconclusion that the Information Sharing Process should really be improved.

The overall analysis is indicating that the company’s progress has mainlyattained through dedication of employees. The effectiveness of itsmanagement, their willingness to take advantage of opportunities and face

challenges of changing economic picture, this all contributes to the verymuch improved and sound position of company. This is really appreciable forthe devotion and hard work of all the employees of the company.

27



SUGGESTIONS

Recommendations for improvement are:

• Proper succession planning should be conducted; replacements chartshould be made so that if any vacancy prevails in organization therewill be back end to fulfill that need in urgent manner,

• As the turnover rate is high this affects the working condition of anorganization so efforts should be made to reduce the annual turnover.

• As mentioned above the problem of forecasting exists in Arzoo textilemill, no system is available which measures the current demand andsupply, the mill does not forecast their need due to which thedisturbance occurs in human resource

• Arzoo textile mill should more focus over external supply of HR as theycan generate more new ideas, fresh blood should be introduced toorganization not only in peak season but throughout the year

• Special incentives should also be given to Head on Eid and on otherspecial days should be given to the workers.

• Different training courses should be arranged for the up lifting andimproving the quality of work for employees.

28



29

arzoo textile

Documents